A slowdown in the transition to electric vehicles contributed to a fall in UK car production last year, new figures show.
The total was just over 900,000 in 2024, down by almost 12% on the previous year, according to the Society of Motor Manufacturers and Traders (SMMT).
There was a 20% decline in battery electric (BEV), plug-in hybrid (PHEV) and hybrid vehicle (HEV) output, which the SMMT said was expected, adding that they still accounted for over a third of production, the second highest on record.
Factories turned out 779,584 cars and 125,649 commercial vehicles (CVs), a total of 905,233.
Car companies announced investment of more than £20 billion in electric vehicle (EV) production in 2023 and a further £3.5 billion in 2024 so the decline will be temporary, the SMMT predicted.
Chief executive Mike Hawes said the industry was still going in “one direction” but added there was fierce competition to attract investment.
He called for moves to incentivise consumers to buy EVs as well as having a tariff-free enhanced trade partnership with the EU, which remains the biggest market for exports.
Almost eight in 10 cars were destined for export last year, with 77.5% (467,937 units) shipped to the top three markets – the EU (54%), US (16.9%) and China (6.6%).
Exports to the EU and China were down by 24.3% and 21.8% respectively but those to the US rose 38.5%, which the SMMT said emphasised the need for supportive trading conditions across the Atlantic.
CV production increased by 4% last year, the best since 2008, but the number of cars built was affected by issues including factories preparing to switch to EVs, weakness in global markets as well as a slowdown in the transition to electrification amid tough economic conditions, said the SMMT.
December rounded off 10 consecutive months of decline for British car production, falling by 27% compared to the same month a year previously.
Mr Hawes said the car sector faced a “very difficult year” but he believed there were opportunities for new jobs as the industry transitions, in areas including software development.
The SMMT had good access to the Labour Government and was encouraged by its industrial strategy plans, he said.
“Amid significant geopolitical and trade tensions, UK manufacturers are set on turning billions of pounds of investment into production reality, transforming factories to make new electric vehicles for sale around the world.
“Growing pains are inevitable, so the drop in volumes last year is not surprising. With new, exciting models and battery production on the horizon, the potential for growth is clear.
“Securing this future, however, requires industrial and trade strategies that deliver the competitive conditions essential for growth amidst an increasingly protectionist global environment,” he added.
The latest independent production outlook expects car and light van production to be around 839,000 this year, rising to 930,000 in 2027, with the potential to get above one million in 2028 and over 1.1 million by 2030.
