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UK vehicle production declines in H1 2025
UK vehicle production declines in H1 2025

Yahoo

time5 days ago

  • Automotive
  • Yahoo

UK vehicle production declines in H1 2025

New vehicle manufacturing in the UK saw a decrease of 11.9% in the first half of 2025, with total production reaching 417,232 units, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). A slight recovery was noted in June, where car production increased by 6.6%, although this was compared to a period last year that faced challenges such as model changeovers and supply chain disruptions. Switch Auto Insurance and Save Today! The Insurance Savings You Expect Affordable Auto Insurance, Customized for You Great Rates and Award-Winning Service Overall, car output for the year to date has fallen by 7.3%, with 385,810 cars produced. The commercial vehicle sector experienced a more severe decline, with production dropping by 45.4% to 31,422 units due to restructuring efforts at manufacturing plants. In contrast, the production of electrified vehicles saw a modest rise of 1.8%, resulting in 160,107 units produced, which accounted for 41.5% of total output in the first half of the year. The UK automotive industry remains focused on exports, with 76.9% of production intended for international markets, the report said. The European Union is the largest destination for UK car exports, making up 54.4% of the total, followed by the US at 15.9%, China at 7.5%, Turkey at 4.1%, and Japan at 2.7%. These five markets together represent over 80% of the UK's overseas sales. Despite a decline in export volumes over the past three months, culminating in an 18.7% drop in June, the US continues to be the largest single export market for UK vehicles, highlighting the significance of the recent UK-US trade agreement, which provides reduced tariffs for UK automotive exports. Looking forward, the global economic environment remains uncertain, with projections indicating a 15% decrease in total vehicle output to 755,000 units for 2025. However, a potential recovery is anticipated in 2026, with a forecasted increase of 6.4% bringing production to 803,000 units. The report suggests that the swift implementation of the new industrial strategy could enhance the UK's competitiveness in the automotive sector, potentially restoring its position among the top 15 global auto manufacturing locations and contributing an estimated £50bn to the economy. Additionally, the government's automotive sector strategy, DRIVE35, outlines initiatives aimed at supporting the industry's economic and environmental objectives. The introduction of the Electric Car Grant, which allocates £650m for electric vehicle incentives, may also stimulate the domestic market and improve the UK's attractiveness for industrial investment. SMMT chief executive Mike Hawes said: 'Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception. The figures are not, therefore, unexpected but remain very disappointing. 'However, there are foundations for a return to growth. The industry is moving to the technologies that will be the future of mobility. Our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an Industrial Strategy with advanced manufacturing and automotive at its core. "With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs.' "UK vehicle production declines in H1 2025" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio

Find out when EV grant eligibility will be announced
Find out when EV grant eligibility will be announced

Daily Mail​

time5 days ago

  • Automotive
  • Daily Mail​

Find out when EV grant eligibility will be announced

Drivers will be told which EV models will be eligible for the government's new Electric Car Grant (ECG) in the next couple of weeks, This is Money can exclusively reveal. While the Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes reportedly informed a press briefing on Wednesday that the Government will announce the EVs receiving subsidies on 11 August, the Department for Transport has told us that this is simply an 'administrative date', and is not when a list will be made public. Instead, a spokesperson on behalf of the department explained car buyers will be given a list before this date so they know which EVs to snap up at a discounted price. The DfT also told This is Money that they are processing applications as fast as manufacturers can file them. While the initial list of eligible models will be made public early next month, more will be announced shortly after to take into account later applications from brands. It means drivers could be forced to wait even longer to get a comprehensive quota of eligible EVs. A DfT spokesperson told This is Money: 'We expect dozens of models to be eligible for the electric car grant, which will provide a substantial boost for the industry and save drivers thousands of pounds. We want the discounts to become available to drivers as soon as possible, and we are engaging extensively with vehicle manufacturers and have published guidance to help them apply as easily as possible.' There are around 150 new EV models available to car buyers. However, only those priced at £37,000 or under will qualify for Labour's ECG. On top of the price tag criteria, electric models must meet stringent science-based emissions targets to prove that both the car and battery manufacturing is as sustainable as possible. The SMMT's Mike Hawes told press he expects a third of the EVs on the market to receive grants, based on the extensive qualifying criteria. Depending on how sustainable each model is will determine whether it qualifies for the full £3,750 grant or only for the lower £1,500 grant. There has been widespread criticism of the grants as the government chose not to release a list of eligible manufacturers and models from the offset. Instead, it has requested manufacturers apply to the scheme without knowing if their EVs will qualify. Some have claimed they are still wading through bureaucracy to find out. The SMMT briefing also revealed that the automotive industry was not consulted on the ECG ahead of its announcement - something that senior figures at Chinese car giant MG also relayed to This is Money on Tuesday. The trade body has also voiced its disappointment that denying some manufacturers and models grants will make 'the route to Zero Emission Vehicle mandate compliance worse' for those brands. The mandate demands mainstream makers meet increasing annual sales share thresholds for EVs - in 2026, this is a minimum of 28 per cent for cars and 16 per cent for vans. Hawes told journalists that, while 'any support is the right thing', the fact that the grant 'will help some but not all manufacturers' isn't a good thing. It's been reported that Chinese and South Korean manufacturers will not qualify for the grants, which would take out a significant chunk of the cheap end of the EV market, removing brands including MG, BYD and Kia. Preempting their exclusion, Chinese car makers have already announced their own 'electric car grant' discounts. MG is currently offering £1,500 off two EV models (the MG S5 EV and MG4 EV), GWM slashing £3,750 off its Ora 03 EV and Leapmotor trimming prices by £1,500 to £3,750 for its two UK-available EV models. BYD, however, is not offering its own EV grant and has dismissed the scheme entirely, dubbing it 'stupid' and 'too little, too late' from UK ministers. Executives at the world's largest EV maker also said that grants will act like a 'drug' that will hurt the market in the long run. They added that Europe can't fight Chinese EVs forever. He also pointed out that 'government has said it will look to support local manufacturing if possible', and added that he believes the ECG 'will be a success, as consumers respond to carrots'. The DfT has told This is Money that suggestions British car makers will be treated differently is untrue and that 'all products are assessed under the same framework'.

Car buyers to be told which EVs qualify for the new Electric Car Grant BEFORE 11 August
Car buyers to be told which EVs qualify for the new Electric Car Grant BEFORE 11 August

Daily Mail​

time5 days ago

  • Automotive
  • Daily Mail​

Car buyers to be told which EVs qualify for the new Electric Car Grant BEFORE 11 August

Drivers will be told which EV models will be eligible for the government's new Electric Car Grant (ECG) in the next couple of weeks, This is Money can exclusively reveal. While the Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes reportedly informed a press briefing on Wednesday that the Government will announce the EVs receiving subsidies on 11 August, the Department for Transport has told us that this is simply an 'administrative date', and is not when a list will be made public. Instead, a spokesperson on behalf of the department explained car buyers will be given a list before this date so they know which EVs to snap up at a discounted price. The DfT also told This is Money that they are processing applications as fast as manufacturers can file them. While the initial list of eligible models will be made public early next month, more will be announced shortly after to take into account later applications from brands. It means drivers could be forced to wait even longer to get a comprehensive quota of eligible EVs. A DfT spokesperson told This is Money: 'We expect dozens of models to be eligible for the electric car grant, which will provide a substantial boost for the industry and save drivers thousands of pounds. 'We want the discounts to become available to drivers as soon as possible, and we are engaging extensively with vehicle manufacturers and have published guidance to help them apply as easily as possible.' There are around 150 new EV models available to car buyers. However, only those priced at £37,000 or under will qualify for Labour's ECG. On top of the price tag criteria, electric models must meet stringent science-based emissions targets to prove that both the car and battery manufacturing is as sustainable as possible. The SMMT's Mike Hawes told press he expects a third of the EVs on the market to receive grants, based on the extensive qualifying criteria. Depending on how sustainable each model is will determine whether it qualifies for the full £3,750 grant or only for the lower £1,500 grant. There has been widespread criticism of the grants as the government chose not to release a list of eligible manufacturers and models from the offset. Instead, it has requested manufacturers apply to the scheme without knowing if their EVs will qualify. Some have claimed they are still wading through bureaucracy to find out. The SMMT briefing also revealed that the automotive industry was not consulted on the ECG ahead of its announcement - something that senior figures at Chinese car giant MG also relayed to This is Money on Tuesday. There are around 150 new EV models available to car buyers, but only those priced at £37k or under (like the Renault 5 E-Tech pictured) will qualify for the government's ECG. They also have to meet stringent sustainability criteria, with the most sustainably produced models getting the full £3,750 and those made less sustainably getting £1,500 or nothing The trade body has also voiced its disappointment that denying some manufacturers and models grants will make 'the route to Zero Emission Vehicle mandate compliance worse' for those brands. The mandate demands mainstream makers meet increasing annual sales share thresholds for EVs - in 2026, this is a minimum of 28 per cent for cars and 16 per cent for vans. Hawes told journalists that, while 'any support is the right thing', the fact that the grant 'will help some but not all manufacturers' isn't a good thing. It's been reported that Chinese and South Korean manufacturers will not qualify for the grants, which would take out a significant chunk of the cheap end of the EV market, removing brands including MG, BYD and Kia. Preempting their exclusion, Chinese car makers have already announced their own 'electric car grant' discounts. MG is currently offering £1,500 off two EV models (the MG S5 EV and MG4 EV), GWM slashing £3,750 off its Ora 03 EV and Leapmotor trimming prices by £1,500 to £3,750 for its two UK-available EV models. BYD, however, is not offering its own EV grant and has dismissed the scheme entirely, dubbing it 'stupid' and 'too little, too late' from UK ministers. Executives at the world's largest EV maker also said that grants will act like a 'drug' that will hurt the market in the long run. They added that Europe can't fight Chinese EVs forever. However the SMMT doesn't believe that the ECG is intended to hinder a particular manufacturer or region. He said ministers have formulated criteria that only benefits 'products with broader sustainability goals, not just zero tailpipe emissions'. He also pointed out that 'government has said it will look to support local manufacturing if possible', and added that he believes the ECG 'will be a success, as consumers respond to carrots'. The DfT has told This is Money that suggestions British car makers will be treated differently is untrue and that 'all products are assessed under the same framework'.

UK vehicle production falls again
UK vehicle production falls again

Yahoo

time5 days ago

  • Automotive
  • Yahoo

UK vehicle production falls again

UK vehicle manufacturing was down 11.9% in first half amid global trade disruption and economic uncertainty. UK new vehicle manufacturing declined by 11.9% to 417,232 units in the first six months of the year, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT). However, the decline was softened by a 6.6% increase in car production in June, although this was in comparison with last year when model changeovers and supply chain issues depleted output. As a result, year-to-date car output declined by 7.3% as 385,810 cars rolled off factory lines. Restructuring at commercial vehicle production plants, meanwhile (Luton Stellantis/Vauxhall closure), resulted in a first-half volume fall of 45.4% to 31,422 units. While overall output fell, electrified car production rose by 1.8% to 160,107 units – delivering a record share of output for the first half of the year, with hybrid, plug-in hybrid and battery electric vehicles accounting for more than two in five (41.5%) units produced in the UK in 2025. Switch Auto Insurance and Save Today! Affordable Auto Insurance, Customized for You The Insurance Savings You Expect Great Rates and Award-Winning Service UK car production remains export-focused, with some 76.9% of output headed overseas year-to-date and greater certainty now returning to key markets. The EU remains the main destination for UK car exports (54.4% share), followed by the US (15.9%) China (7.5%), Turkey (4.1%) and Japan (2.7%), with these five destinations alone accounting for more than eight in 10 overseas sales. Despite three straight months of declining export volumes culminating in an -18.7% drop in June, the US maintained its position as the UK's biggest single export market underscoring the importance of the UK-US trade deal. The SMMT said that deal, which came into force on 30 June, gives the UK reduced tariff rates into the US automotive market, which can become a basis for future growth. Mike Hawes, SMMT Chief Executive, said: 'Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception. 'The figures are not, therefore, unexpected but remain very disappointing. However, there are foundations for a return to growth. The industry is moving to the technologies that will be the future of mobility, our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an Industrial Strategy with advanced manufacturing and automotive at its core. 'With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs.' "UK vehicle production falls again" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

Vehicle production in Britain sinks to lowest level since 1953
Vehicle production in Britain sinks to lowest level since 1953

Daily Mail​

time5 days ago

  • Automotive
  • Daily Mail​

Vehicle production in Britain sinks to lowest level since 1953

Outputs of new cars and vans in Britain in the first half of the year have plunged to lowest levels on record since 1953, excluding the industry-shutdown period during Covid. Production has fallen by 11.3 per cent year-on-year between the months of January and June because of multiple headwinds battering the automotive sector, figures shared by the Society of Motor Manufacturers and Traders (SMMT) show. Car outputs are down from 416,000 units in the first half of 2024 to 385,800 in Q1 this year - a decline of 7.3 per cent. The SMMT blamed the dip on uncertainty over export tariffs for the US - Britain's second most popular destination for UK-made motors shipped overseas - which saw some makers pause production during the opening six months of the year. Jaguar ceasing outputs any cars in November for a 12-month 'sunset period' before relaunching as an electric-only brand in 2026 have taken their toll, as has Mini's decision to shift some vehicle outputs to China and Nissan preparing for production of two new EV models, the first being the all-new third-generation Leaf. Commercial vehicle manufacturing has sunk comparatively lower by a massive 45 per cent. The trade body said this is mostly due to Stellantis' decision to shutter its Vauxhall Luton factory at the end of March . Mike Hawes, SMMT chief executive, told a press briefing on Wednesday that the first half year figures are 'depressing' but hopes it marks 'the nadir' for the industry, while ministers have said the numbers are 'very concerning'. Attempting to remain buoyant in the face of a 72-year low for auto production, the SMMT said significant advances for the sector have been announced in recent weeks that could help stop the auto manufacturing rot. This includes the US-UK tariff deal, which was announced in early May but only came into effect on 30 June. As such, the half-year results posted on Thursday are not reflective of the potential confidence the agreement with the United States could garner. The data shows that UK car production is predominantly export-focused, with 77 per cent of output headed overseas. While the EU is the most common destination (54 per cent of exports), the US is a major market for British-made motors, representing almost 16 per cent of all shipped vehicles. Hawes also saluted the Government's reintroduction of subsidies towards the purchase of some new EVs, with Labour last week unveiled its Electric Car Grant for sub-£37,000 battery models. The SMMT said this would be a 'boost' for the industry, though said the scheme - which includes thresholds around emissions produced during the manufacturing of cars ant their batteries to qualify for the grants - lacked clarity and had been announced without consultation with the industry. Business Secretary Jonathan Reynolds' verdict on today's figures were more downbeat. During an interview with BBC Breakfast, he said he is 'very concerned' about the industry, which he called the 'jewel in the crown' of British manufacturing. 'I'm very concerned about automotive, the pressures on the system which come from the US trade agenda, but also an incredible increase in capacity from China. 'It's why as a government we've adopted so many measures specifically around the automotive sector.' Closer inspection of the latest data shows that commercial vehicle outputs in the UK crashed last month, with just 2,689 vans built in factories last month. This is down a monumental 77 per cent on the 11,600 output in June 2024. However, passenger car production increased slightly during the previous month, up 6.6 per cent to just over 66,300 units. The trade body said this was partially a result of growth linked to the US-UK trade agreement. That said, the SMMT has remained modest about future outlooks. It is not expecting vehicle production to exceed one million units per year by the end of the decade. The last time this was achieved was in 2021. Speaking to journalists on Wednesday, Mr Hawes said that the government's own target of reaching 1.3 million vehicles per year by 2035 is 'quite some ambition from where we are', adding that 'we clearly require at least one, if not two, new entrants to come into UK production' to reach such an optimistic objective. While outputs are generally down, the SMMT's data does show that British manufacturing is at least moving with the times. Production of electrified vehicles - fully-electric, self-charging hybrid and plug-in hybrid vehicles - rose 1.8 per cent and now account for more than two in five motors made in Britain. This is a new record. Transport Secretary Heidi Alexander will be hoping the reintroduction of grants of up to £3,750 towards the purchase of some EVs priced at or below £37,000 will help to drive outputs. While the SMMT said it will provide a welcome boost to increase private EV sales, there remains widespread confusion about which vehicles will qualify for the discounts - and more importantly, those that won't. Manufacturers are required to apply to be included in the grant scheme on a first-come, first-served basis. It is expected that Chinese and Korean vehicles will not meet the criteria, but little else is clear regarding how the £650million funding will be shared. 'The difficulty is, we don't know. Nobody knows, but nobody, not even government, really knows yet, which models and which brands will qualify,' Mr Hawes said yesterday in comments quoted by the BBC . 'I think the industry is still trying to get clarity behind its application. 'Right now, your dealer cannot tell you whether the model you are considering is eligible.' He believes a full list of eligible EV models will be released on 11 August, but the DfT has told This is Money it will reveal some of the qualifying cars ahead of that date, likely in the first week of next month. Hawes said clarity is needed imminently with September on the horizon. The ninth month of the year is one of the two biggest for new car registrations due to the arrival of a new age identifier on number plates. A number of Chinese brands - named MG, Leapmotor and Great Wall Motor Ora - have already introduced their own discounts in the last week to match those provided by the Government's grant scheme in a clear indication that they believe they will not qualify. A transport department spokesperson said it expected 'dozens of models to be eligible for the electric car grant, which will provide a substantial boost for the industry and save drivers thousands of pounds'. 'We want the discounts to become available to drivers as soon as possible, and we are engaging extensively with vehicle manufacturers and have published guidance to help them apply as easily as possible,' they added.

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