Summary
British car and van production has reached its lowest level since 1953 for the first half of the year, partly due to the closure of Vauxhall's Luton plant and trade uncertainties. The UK signed a new trade deal with the US reducing tariffs, which raised hopes for recovery, but confusion remains over new electric vehicle grants, and production levels are not expected to reach previous highs soon.
Key Facts
- Car and van production in the UK is at its lowest since 1953, excluding the Covid shutdown.
- Car production decreased by 7.3% in the first half of the year, while van production fell by 45%.
- The closure of Vauxhall's Luton plant contributed significantly to the decline in van production.
- A new UK-US tariff deal, reducing tariffs from 27.5% to 10%, became effective on June 30.
- Production of electric and hybrid vehicles increased slightly, making up more than 40% of total vehicle output.
- The UK government reintroduced electric vehicle grants worth up to £3,750 but did not clearly define eligibility criteria.
- The Society of Motor Manufacturers and Traders (SMMT) does not expect production to return to 2021 levels by the end of the decade.
- There is uncertainty about which vehicles will qualify for the new electric vehicle grants, impacting manufacturers.
