July 25, 2024
News

May 2024 sees a 59% decline in commercial vehicle production in the UK

The UK experienced a significant 59.3% decrease in commercial vehicle production in May 2024, marking the third consecutive month of decline, according to the Society of Motor Manufacturers and Traders (SMMT).

This decline has been attributed to ongoing supply chain challenges that have disrupted manufacturing processes.

In May, UK factories produced a total of 4,400 commercial vehicles, including trucks, vans, taxis, buses, and coaches.

Comparatively, this figure is significantly lower than the 10,817 units produced in the same month the previous year, which was the highest output since 2008.

Last year’s growth was primarily driven by efforts to meet the pent-up demand following the Covid-19 pandemic.

Exports accounted for over two-thirds (68.8%) of the total production, with a 61.9% reduction to 3,027 units last month.

The European Union remained the main export destination, receiving 95.9% of the total vehicles shipped overseas.

Domestic production also saw a decline, with only 1,373 units manufactured for the UK market, indicating a 52.2% drop.

Cumulative production for the year to date has decreased by 3.2% to 45,439 units, representing a loss of 1,492 units.

Despite the overall decline, demand for British-built vehicles in international markets has grown, with exports increasing by 5.9% to 31,688 units.

Approximately 69.7% of commercial vehicles produced this year have been for export.

However, the number of vehicles manufactured for the UK market has fallen by 19.1% to 13,751 units.

The industry anticipates a recovery in these figures as production stabilizes over the year.

SMMT chief executive Mike Hawes stated, “The recent downturn is disappointing but temporary. As supply chain disruptions are resolved, output should be back on track.”

The next government should ensure favorable market conditions, improve the competitiveness of UK manufacturing, and ensure trade flows are as free and fair as possible.


Frequently Asked Questions

1. What caused the decline in commercial vehicle production in the UK?

The decline in production was primarily attributed to ongoing supply chain challenges.

2. How much did commercial vehicle production decrease by in May 2024?

Commercial vehicle production in the UK decreased by 59.3% in May 2024.

3. What were the main export destinations for UK-produced commercial vehicles?

The European Union remained the main export destination, receiving 95.9% of the total vehicles shipped overseas.

Conclusion

Despite the recent decline in commercial vehicle production in the UK, the industry anticipates a recovery as supply chain disruptions are resolved. It is crucial for the government to maintain favorable market conditions and support the competitiveness of UK manufacturing to ensure future growth in the sector.

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