Society of Motor Manufacturers and Traders (SMMT)

The 107th #SMMTAnnualDinner was a chance to look back at 2024 & reflect on why the auto industry matters so much. A vital part of the economy, integral to growth, the delivery of net zero & a global trade hub. The prize on offer is great. £50bn of green growth over the next decade

The automotive industry welcomes government’s review of both the end of sale date for cars powered solely by petrol or diesel, and possible changes to the flexibilities around the Zero Emission Vehicle Mandate. These are both critical issues for an industry that is facing significant challenges globally as it tries to decarbonise ahead of natural market demand. Aside from the billions invested in new technologies and products, it has cost manufacturers in excess of £4 billion in discounting in the UK this year alone. This is unsustainable and, with the 2025 market looking under even greater pressure, it is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand. Such action will support not only the industry, but also deliver for the economy, consumer, government and the environment. https://lnkd.in/eiSnzB7w Jonathan Reynolds MP Department for Business and Trade Department for Transport (DfT), United Kingdom

UK manufacturing this year has reflected an automotive sector in transition as the investment announcements of 2023 gradually become reality, with factories of all vehicle types retooling and battery capacity scaling up for EVs. Such fundamental change is necessary but immensely complex and inevitably brings a temporary dip in volumes, as SMMT’s November manufacturing figures out today show, with year-to-date volumes down -12.9% – almost 109,000 fewer cars than the same period in 2023 and nearly half a million short of 2019 volumes. Many countries are seeking new automotive investment and growth so the UK must actively pursue them for its own manufacturing base and indeed our supply chains, already diverse and making almost every component needed for an EV. The government’s Invest 2035 strategy, alongside a comprehensive trade strategy, cannot come soon enough. With automotive at its heart, the UK could steer some £50 billion of growth – green growth – in the next decade. 2025 must be the year in which industry and government put both hands on the wheel. More in this week's Update: https://lnkd.in/gna2hm5e

As industry awaits the government’s consultation on the end of sale date for cars fuelled solely by petrol or diesel, as well as potential changes to the zero emission vehicle mandate, there is pause for thought and reflection on 2024 – a year in which the UK automotive sector, and the global industry, has faced strong headwinds as it seeks to decarbonise. Billions had been spent before 2024 in the development of cutting-edge EVs with 135 such car models and 33 vans now available. Yet billions more have been required this year to subsidise sales to meet the UK’s tough EV mandate. Industry has been compelled to single-handedly underwrite the transition against a backdrop of lacklustre demand, which has meant unprecedented and, indeed, unsustainable EV discounting. Consumer purchase incentives, a strategy that ensures accessible and affordable charging infrastructure, and a review of the regulation itself are all needed to deliver decarbonisation and economic growth. That mandate review, pledged before Christmas, must come urgently to provide the clarity and support the sector needs. More in this week's Update: https://lnkd.in/gna2hm5e

With more British-built commercial vehicles keeping businesses here and abroad on the move, that supports UK jobs, trade and economic growth. It’s essential this sector continues to thrive but long-term growth requires an ambitious Industrial Strategy to make Britain a globally attractive location for new investment. Having strong markets close to where products are made is a major advantage, so government’s review of the EV mandate must come quickly and ensure market support is as ambitious as regulation. https://lnkd.in/eAxZGgBN

🚚 The UK’s CV sector is export-led with seven in 10 (70.9%) vehicles produced in November heading overseas, although volumes were down by -4.4% to 9,034 units 🌍 The EU continues to be Britain’s biggest export market, with almost all (98.7%) exports destined for sale in the bloc https://lnkd.in/eBEve6rq

UK commercial vehicle (CV) output dipped for the second month in a row in November, down -4.1% with 12,749 units leaving factories The decline is in comparison with a particularly strong 2023, which saw the biggest November volume in 17 years https://lnkd.in/e2pYyRax

CV output dips in November with strategy needed to secure long-term growth 🚚 production dips -4.1% in November compared with a strong 2023 📉 Volume of vans, trucks, buses and taxis heading for UK sale falls -3.2% as exports drop -4.4% 🏆 2024 output remains 5.6% up with the largest year-to-date volume since 2008 ⚡ Sustained success depends on ambitious Industrial Strategy with £50 billion green growth potential https://lnkd.in/eBEve6rq

📉 With UK car makers retooling factories to make electric vehicles, all major manufacturers experienced declines, representing the worst performance for the month since 1980 🌍 Output for both domestic and export markets fell sharply, down -56.7% and -21.3% respectively, with more than eight-in-10 cars shipped overseas and more than half of these (52.3%) heading into the EU https://lnkd.in/eaE2qgwH