Latest news with #vehicleproduction
Yahoo
6 days ago
- Automotive
- Yahoo
UK auto production to drop 15% in 2025, recovery expected in 2026, SMMT data shows
(Reuters) -Britain's new vehicle production is expected to decline by 15% in 2025, weighed down by global trade disruption; however, a reversal is expected the next year, industry data showed on Thursday. While global automakers continue to feel the impact of U.S. President Donald Trump's tariffs, the UK is set to benefit from a new trade deal that slashed taxes on British car exports. UK new vehicle production is expected to reach 755,000 units this year, data from the Society of Motor Manufacturers and Traders showed, lower than last year. However, the sector is expected to recover in 2026 with a 6.4% growth, pushing numbers back above 800,000 units. "There are foundations for a return to growth," said SMMT CEO Mike Hawes, after calling half-yearly output figures "disappointing". Car and commercial vehicle manufacturing fell nearly 12% to 417,232 units in the first six months of the year. However, June output rose 6.6% in the month, breaking its five-month downward trend, to 66,317 units. However, electrified car production rose by 1.8% to 160,107 units – a record share of output for the first half of the year.
Yahoo
6 days ago
- Automotive
- Yahoo
Car industry on track for worst year since 1952
British vehicle production will hit the lowest level seen since 1952 this year as US tariffs and weak demand across Europe hobble the automotive industry. Car and van makers expect to make just 755,000 vehicles in 2025, down from a previous estimate of 818,000, according to the Society of Motor Manufacturers and Traders (SMMT). Switch Auto Insurance and Save Today! Great Rates and Award-Winning Service The Insurance Savings You Expect Affordable Auto Insurance, Customized for You That would be the lowest total for 73 years, excluding the coronavirus pandemic, and represents an annual drop of nearly 17pc. The malaise is a fresh headache for ministers as they battle to revitalise British industry, amid complaints that manufacturers are being squeezed by high energy costs and taxes. Mike Hawes, chief executive of the SMMT, blamed the weak numbers on factory closures, poor demand for new cars, tariffs imposed by Donald Trump and the retooling of production lines to make electric vehicles (EVs), which requires some downtime. He said: 'It has been one of the toughest periods in history for the UK automotive industry.' Total vehicle production has fallen 11.9pc to 417,232 units in the first half of this year. That included 385,810 cars, the SMMT said. Production of cars did increase by 6.6pc in June although this was artificially boosted by factory outages last year. Mr Hawes said the SMMT now expected annual production to remain below one million vehicles for the rest of the decade. Previously, the lobby group had predicted it would surpass that level again in 2028. The last time one million vehicles were produced was 2023. It means steep growth will be needed in the coming years to meet the Government's target of 1.3 million for 2035, announced as part of the recently-published industrial strategy. 'It's an ambition which we obviously share,' added Mr Hawes. 'But that's quite some ambition, from where we are to where we need to be.' Hitting the target would require 'at least one, if not two' new car makers to open factories in Britain, he said. Mr Hawes also welcomed new government grants worth up to £3,750 for consumers who buy EVs but warned that a lack of clarity around which cars will qualify had left manufacturers temporarily 'operating in a fog'. The Government has confirmed that the price of eligible cars will be capped at £37,000, while manufacturers will have to show their vehicles meet a certain threshold for 'embedded carbon'. They will also be asked to prove that, as a business, they are signed up to 'science-based' net zero targets that show how they plan to mostly eliminate their emissions over the next 25 years. The combined effect of these requirements will probably be the exclusion of cars made in countries such as China and Korea although the outcome will not be known until car makers apply to the scheme. The uncertainty surrounding the scheme is likely to depress car sales for the next month or so as companies wait to decide how many cars to sell - and at what prices - when taking the grants into account. 'You don't know whether your competitors are suddenly going to have a £3,750 price advantage on you,' Mr Hawes said. At the same time, manufacturers are scrambling to hit sales targets set out under the Government's zero emission vehicle mandate. The policy ostensibly says 28pc of cars sold in 2025 must be electric, before rising gradually to 80pc by 2030, although 'flexibilities' built into the scheme means the true requirement this year will be lower. Car makers claim they are spending billions of pounds per year on price cuts to meet the requirements, as consumer demand for EVs fails to meet levels anticipated by the industry previously. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
6 days ago
- Automotive
- Telegraph
Car industry on track for worst year since 1952
British vehicle production will hit the lowest level seen since 1952 this year as US tariffs and weak demand across Europe hobble the automotive industry. Car and van makers expect to make just 755,000 vehicles in 2025, down from a previous estimate of 818,000, according to the Society of Motor Manufacturers and Traders (SMMT). That would be the lowest total for 73 years, excluding the coronavirus pandemic, and represents an annual drop of nearly 17pc. The malaise is a fresh headache for ministers as they battle to revitalise British industry, amid complaints that manufacturers are being squeezed by high energy costs and taxes. Mike Hawes, chief executive of the SMMT, blamed the weak numbers on factory closures, poor demand for new cars, tariffs imposed by Donald Trump and the retooling of production lines to make electric vehicles (EVs), which requires some downtime. He said: 'It has been one of the toughest periods in history for the UK automotive industry.' Total vehicle production has fallen 11.9pc to 417,232 units in the first half of this year. That included 385,810 cars, the SMMT said. Production of cars did increase by 6.6pc in June although this was artificially boosted by factory outages last year. Mr Hawes said the SMMT now expected annual production to remain below one million vehicles for the rest of the decade. Previously, the lobby group had predicted it would surpass that level again in 2028. The last time one million vehicles were produced was 2023. It means steep growth will be needed in the coming years to meet the Government's target of 1.3 million for 2035, announced as part of the recently-published industrial strategy. 'It's an ambition which we obviously share,' added Mr Hawes. 'But that's quite some ambition, from where we are to where we need to be.' Hitting the target would require 'at least one, if not two' new car makers to open factories in Britain, he said. Mr Hawes also welcomed new government grants worth up to £3,750 for consumers who buy EVs but warned that a lack of clarity around which cars will qualify had left manufacturers temporarily 'operating in a fog'. The Government has confirmed that the price of eligible cars will be capped at £37,000, while manufacturers will have to show their vehicles meet a certain threshold for 'embedded carbon'. They will also be asked to prove that, as a business, they are signed up to 'science-based' net zero targets that show how they plan to mostly eliminate their emissions over the next 25 years. The combined effect of these requirements will probably be the exclusion of cars made in countries such as China and Korea although the outcome will not be known until car makers apply to the scheme. The uncertainty surrounding the scheme is likely to depress car sales for the next month or so as companies wait to decide how many cars to sell - and at what prices - when taking the grants into account. 'You don't know whether your competitors are suddenly going to have a £3,750 price advantage on you,' Mr Hawes said. At the same time, manufacturers are scrambling to hit sales targets set out under the Government's zero emission vehicle mandate. The policy ostensibly says 28pc of cars sold in 2025 must be electric, before rising gradually to 80pc by 2030, although 'flexibilities' built into the scheme means the true requirement this year will be lower. Car makers claim they are spending billions of pounds per year on price cuts to meet the requirements, as consumer demand for EVs fails to meet levels anticipated by the industry previously.
Reuters
6 days ago
- Automotive
- Reuters
UK auto production to drop 15% in 2025, recovery expected in 2026, SMMT data shows
July 24 (Reuters) - Britain's new vehicle production is expected to decline by 15% in 2025, weighed down by global trade disruption; however, a reversal is expected the next year, industry data showed on Thursday. While global automakers continue to feel the impact of U.S. President Donald Trump's tariffs, the UK is set to benefit from a new trade deal that slashed taxes on British car exports. UK new vehicle production is expected to reach 755,000 units this year, data from the Society of Motor Manufacturers and Traders showed, lower than last year. However, the sector is expected to recover in 2026 with a 6.4% growth, pushing numbers back above 800,000 units. "There are foundations for a return to growth," said SMMT CEO Mike Hawes, after calling half-yearly output figures "disappointing". Car and commercial vehicle manufacturing fell nearly 12% to 417,232 units in the first six months of the year. However, June output rose 6.6% in the month, breaking its five-month downward trend, to 66,317 units. However, electrified car production rose by 1.8% to 160,107 units – a record share of output for the first half of the year.
Yahoo
15-07-2025
- Automotive
- Yahoo
Nissan is closing flagship Oppama plant in Japan to cut costs
Vehicle production at the Oppama plant in Kanagawa Prefecture, south of Tokyo, will be halted at the end of the 2027 fiscal year, in March 2028, the Japanese automaker said on Tuesday in a statement. After that, all models that had been made or scheduled for production at Oppama will be made at Nissan Motor Kyushu, in Fukuoka Prefecture. The Oppama plant has been a prized symbol for Nissan Motor Corp., which rolled out its Leaf electric car there in 2010, ahead of key rivals. "This transfer is expected to significantly reduce manufacturing costs in Japan, strengthen plant competitiveness, improve product profitability, and support Nissan's long-term growth," said the statement, adding that the related costs are going to be disclosed during the upcoming first quarter financial announcement at the end of July. The plant's closure was expected, as the carmaker has said repeatedly that it is restructuring its operations to boost its profitability, including by consolidating production sites. Nissan, based in the port city of Yokohama, says the tariff policies of President Donald Trump have hurt its bottom line. Earlier this year, Nissan said it was slashing about 15% of its global workforce, or about 20,000 employees, which would include a 9,000 headcount reduction announced late last year, with some in China. Related Nissan to shed 20,000 jobs as Japanese automaker reports loss Renault reports nearly €10 billion non-cash loss due to Nissan stake The company has been racking up losses, hurt by slipping vehicle sales in China and elsewhere, huge restructuring costs and ballooning inventories. Earlier this year, Nissan said it's reducing the number of its auto plants to 10 from 17 to "create a leaner, more resilient business." At that time, it didn't say which plants were being closed but confirmed the closures will include factories in Japan. It's also reducing production capacity to 2.5 million units from 3.5 million. Nissan racked up a loss of ¥670.9 billion (€3.9bn) for the fiscal year through March, down from a ¥426.6bn (€2.5bn) profit recorded in the previous fiscal year. Its chief executive Ivan Espinosa took up the post in April and was set to speak to reporters later Tuesday. He replaced Makoto Uchida, who stepped down to take responsibility for the faltering results.
