UK car production fell sharply in October amid industry concerns over “intense pressure” on investment in electric vehicle manufacturing.
Production of all automobiles fell by more than 14,000 vehicles from the previous year, mainly due to a drop in exports following weak demand, the Society of Automobile Manufacturers and Traders said. (SMMT).
Production of electric and hybrid vehicles fell by a third compared to last year, also due to falling demand.
The figures come after Vauxhall maker Stellantis announced this week that it would close its Luton van manufacturing plant, partly due to rules imposed to speed up the transition to electric vehicles in the UK.
Additionally, Ford announced last week that it would cut 800 jobs in the UK over the next three years due to tough business conditions, including intense competition and lower demand for electric vehicles.
Mike Hawes, SMMT chief executive, said: “This is a very worrying time for the automotive industry, with massive investment in factories and new zero-emission products under intense pressure. »
Globally, demand for electric vehicles has slowed, he said, while in the UK manufacturers face “the toughest targets and most accelerated timelines” without the incentives necessary for customers to stimulate demand.
Under the UK's zero emissions mandate, manufacturers are currently required to sell a certain percentage of zero-emission cars and vans before the sale of new petrol and petrol cars is banned by 2030. diesel.
By 2024, electric vehicles are expected to account for 22% of an automaker's car sales and 10% of minivan sales. This objective is expected to increase.
For every sale that takes it outside the mandate, businesses must pay a £15,000 fine – but they can also buy 'credits' from businesses that can meet the mandate.
The government said it would consult on these rules.
