UK factories produced 779,584 cars and 125,649 commercial vehicles in 2024, according to new figures published by the Society of Motor Manufacturers and Traders (SMMT).
The combined total of 905,233 units was 11.8% down year-on-year.
While commercial vehicle (CV) output grew by 4%, its best level since 2008, the SMMT says that multiple factors impacted car volumes, including the end of production for some long running models as factories retooled for electric vehicles (EVs), weakness in key global markets, and a slowdown in the transition to electrification amid tough economic conditions.
December rounded off 10 consecutive months of decline for British car production, with output down by more than a quarter (27.1%) to 45,022 units.
Over the year, car production fell 13.9%, with output for the UK market down by 8% to 176,019 units, while exports declined 15.5% to 603,565 units.
Nearly eight-in-10 cars produced were destined for export last year, with 77.5% (467,937 units) shipped to the top three markets: the EU (54.0%), US (16.9%) and China (6.6%).
Exports to the EU and China were down 24.3% and 21.8% respectively, but those to the US rose 38.5%, emphasising the need for supportive trading conditions across the Atlantic. Turkey and Japan rounded off the UK’s top five global export markets, followed by Australia, Canada, South Korea, UAE and Israel.
Given the wholesale transformation underway at many car factories, a decline in battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) vehicle output was expected, says the SMMT.
Volumes of these electrified vehicles fell to 275,896 units, down 20.4% on the year before but still accounted for 35.4% of overall output and the second highest on record.
With more than £20 billion worth of investment announced in 2023 and a further £3.5bn in 2024 to drive the UK’s transition to EV production, the SMMT believes that the decline will be temporary.
Mike Hawes, SMMT chief executive, 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.”
An independent production outlook, produced by AutoAnalysis in November, expects UK car and light van production to be around 839,000 units in 2025 before rising to 930,000 units in 2027, with the potential to get above one million units in 2028, and over 1.1 million by 2030.
This is, however, dependent on global car and van market demand improving, positive economic conditions and greater consumer confidence, and the delivery of the competitive conditions necessary to ensure zero emission model launches stay on track, says the SMMT.
It argues that realising this ambition and unlocking future growth will require an industrial strategy with advanced automotive manufacturing at its heart, enabling innovation, attracting investment and supporting the country’s highly skilled workforce.
Equally important, it says, is a healthy domestic market, given manufacturers build close to where they sell, as well as strong overseas demand, notably for electrified vehicles which the sector, and Government, has committed billions to making.
As a result, the SMMT says the industry needs market regulation that reflects the reality of natural demand and a fiscal framework that incentivises consumers to buy these new vehicles that are fundamental to the achievement of our shared net zero ambitions.
By Gareth Roberts