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UK CV Production Achieves Best First Quarter Since 2008 Amidst Export Surge
The first quarter of 2024 has marked a significant milestone for the UK's commercial vehicle (CV) industry, showcasing the best Q1 performance since 2008. According to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT), there has been a 27.4% increase in CV production, with a total of 32,626 vans, trucks, taxis, buses, and coaches rolling off factory lines. This surge represents an 18.6% rise compared to pre-pandemic levels in 2019, highlighting a robust recovery and growing demand, particularly from overseas markets.
Exports have notably surged by 57.9% to 23,060 units in the first quarter, accounting for 70.7% of the year-to-date output. This marks a significant increase from the 57.0% share in Q1 of 2023, driven by international demand for British-built CVs that are increasingly focusing on zero-emission technologies. The European Union remains the primary export destination, absorbing 96.7% of these vehicles. However, domestic production faced a downturn, with a 13.1% decline to 9,566 units for the UK market.
Despite experiencing growth in January and February, March saw a 19.2% decline in output to 7,943 units, marking the first monthly fall since September 2023. This decrease reflects a normalization in the market as manufacturers strive to meet the pent-up demand from the pandemic era while also navigating temporary supply chain shortages and reduced working days due to the early Easter bank holiday.
Mike Hawes, SMMT Chief Executive, expressed optimism about the sector's performance, attributing it to manufacturers' commitment to innovation and sustainability. "It’s good to see UK CV production record its best Q1 performance in some 16 years," he stated. Hawes emphasized the global demand for British-built commercial vehicles and highlighted the importance of maintaining favorable market conditions to sustain production capabilities for green vehicles.
The SMMT's report underscores the critical role of reducing energy costs, upskilling the workforce, and securing free and fair trade deals to attract further investment. These measures are deemed essential for enhancing productivity and advancing the decarbonization of automotive manufacturing and its supply chain.
The UK automotive industry plays a pivotal role in the national economy, contributing £78 billion in turnover and £16 billion in value added. With over 208,000 individuals employed in automotive manufacturing and around 800,000 across the sector, it is a significant source of high-quality jobs outside London and the Southeast. The industry's global trade is substantial as well, with exports worth £94 billion representing 10% of all UK goods exports.
This quarter's performance not only reflects the resilience and adaptability of the UK's CV industry but also sets an optimistic tone for future growth. With expectations for light van production volumes to exceed 135,000 units due to increased electric vehicle output, the sector is poised for continued success in meeting both domestic and international demand.
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