UK vehicle making hits lowest level since 1953, excluding Covid

Simon JackBusiness editorGetty ImagesBritish automobile and van manufacturing within the first half of this yr has hit its lowest stage since 1953, excluding the business shutdown throughout Covid.Automotive output fell 7.3% within the six months to June whereas the closure of Vauxhall’s Luton van plant helped drive van manufacturing down 45%, knowledge from the Society of Motor Producers and Merchants (SMMT) exhibits.Uncertainty over tariffs within the US – the UK business’s second largest market – meant some corporations slowed or stopped manufacturing within the first half of this yr.SMMT stated the US-UK tariff deal which has since come into impact might assist confidence, whereas the federal government stated its electrical automobile (EV) grants would “increase” the business.The SMMT welcomed the EV grants, however it stated the brand new system lacked readability and had been launched with out consulting the business.Mike Hawes, SMMT chief govt, stated the half yr manufacturing figures have been “miserable” however that he hoped that the primary half of this yr marked “the nadir” for the UK auto business.A cope with the US to scale back tariffs from 27.5% to 10% was introduced in Might got here into impact on 30 June, with SMMT recording a small rise in automobile manufacturing in June.Nonetheless, the SMMT doesn’t count on to return to 2021 manufacturing ranges of 1 million automobiles by the top of the last decade.Mr Hawes stated that the federal government’s goal of 1.3 million automobiles per yr by 2035 was “fairly some ambition from the place we’re”, including that “we clearly require a minimum of one, if not two, new entrants to return into UK manufacturing” to hit the goal.Manufacturing of electrified automobiles rose 1.8% with battery, hybrid, and plug-in hybrid automobiles accounting for a document of greater than two in 5 of automobiles produced.Final week the federal government confirmed it should reintroduce grants of as much as £3,750 on some EVs priced at or under £37,000.Enterprise Secretary Jonathan Reynolds instructed BBC Breakfast he was “very involved” concerning the business, which he known as the “jewel within the crown” of British manufacturing.”I am very involved about automotive, the pressures on the system which come from the US commerce agenda, but additionally an unimaginable enhance in capability from China.”It is why as a authorities we have adopted so many measures particularly across the automotive sector.”Whereas the SMMT welcomed the return of incentives that have been abolished in 2022, there may be widespread confusion about which automobiles will qualify for the reductions.The eligibility and stage of low cost can be decided by the quantity of carbon emitted within the manufacturing of the automobile and its battery. They may solely be provided to producers which have verified science-based targets with thresholds the federal government has not but outlined.It’s anticipated that Chinese language and Korean automobiles is not going to meet the standards, however little else is evident.PA MediaVauxhall’s plant in Luton ceased automobile manufacturing in April 2025″The issue is, we do not know. No person is aware of, however no person, not even authorities, actually is aware of but, which fashions and which manufacturers will qualify,” stated Mr Hawes.”I believe the business remains to be attempting to get readability behind its software. Proper now your vendor can’t let you know whether or not the mannequin you might be contemplating is eligible.”He stated readability was wanted quickly as September is the second largest month for brand spanking new automobile registrations.A transport division spokesperson stated it anticipated “dozens of fashions to be eligible for the electrical automobile grant, which is able to present a considerable increase for the business and save drivers hundreds of kilos”.”We would like the reductions to turn into obtainable to drivers as quickly as attainable, and we’re participating extensively with automobile producers and have revealed steering to assist them apply as simply as attainable,” they added.The £650m of grant cash can be awarded on a first-come, first-served foundation.Get our flagship e-newsletter with all of the headlines that you must begin the day. Join right here.