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Car production in reverse as EV mandate weighs

Published 28/11/2024, 08:39
© Reuters.  Car production in reverse as EV mandate weighs
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Proactive Investors - Car production slumped in the UK last month as manufacturers grappled with requirements to make up sales with electrics.

Some 77,484 cars rolled off production lines in October, down 15.3%, or by 14,037, on the same month last year, according to the Society of Motor Manufacturers and Traders (SMMT).

Export volumes dropped 17.6%, while the number of cars built for domestic use fell by 4.7%.

Car makers are required to make up 22% of sales with electric vehicles this year, but have heavily criticised the government-set mandate given lacklustre demand.

“These are deeply concerning times for the automotive industry, with massive investments in plants and new zero-emission products under intense pressure,” SMMT boss Mike Hawes said.

“Slowdowns in the global market - especially for EVs - are impacting production output, with the situation in the UK particularly acute given we have arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary.”

Both Ford Motor (NYSE:F) and Stallantis NV's Vauxhall have laid out plans to cut UK operations in recent days, with the latter signalling the closure of its Luton factory earlier this week.

Read more on Proactive Investors UK

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