September marks a significant rebound in UK commercial vehicle production, showing more than a 25% increase.
- Exports have remained strong, accounting for over 63% of total production, with the EU as the primary market.
- The domestic production for UK buyers has also seen a notable uptick, rising by over 10%.
- Overall production in 2023 outpaces previous years, reflecting successful recovery from earlier supply chain disruptions.
- Industry leaders express concerns over government support levels, especially regarding the transition to electric vehicles.
In September, the production of commercial vehicles (CV) in the UK increased by 25%, with 14,643 units including vans, buses, and lorries manufactured, as reported by the Society of Motor Manufacturers and Traders (SMMT). This growth follows a typical reduction during August’s production lull.
Exports played a crucial role, accounting for 63.3% of September’s output, which equates to 9,276 vehicles. Notably, the European Union received 98.7% of these exports, underscoring a need for streamlined trade relations.
Domestic production also showed growth, with a 10.1% increase amounting to 5,367 vehicles. This upturn contributed to the creation of 93,447 units this year—a substantial 8.5% increase compared to 2023 figures, marking the best production performance during the initial nine months since 2008.
Significantly, the export sector has buoyed growth with a 15.1% rise, counterbalancing a 2.5% domestic market production decline. Mike Hawes, Chief Executive of SMMT, emphasised the importance of strengthening relationships with international markets to maintain this momentum.
Hawes also pointed out that while recent measures by the government have addressed some challenges, they fall short of ensuring the automotive sector’s competitive edge, particularly in the electrification drive. The extension of the Plug-in Van Grant, though positive, fails to meet the scale required to boost demand. He warned that without immediate market and regulatory evaluations, the sector may face reduced investment and job cuts.
The resurgence of the UK’s commercial vehicle production in September highlights both promising growth and ongoing challenges within the industry.
