Yahoo Finance Electric car pivot triggers plunge in vehicle production
British car production fell by more than a quarter last month as some production lines were retooled to make electric vehicles (EVs).
The number of cars built fell to 59,467, down by 27pc compared to a year earlier, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
It marked the first drop since August but the SMMT said the fall had been expected as manufacturers adjusted their factories to make a next generation of cars, including electric ones.
An early 2024 Easter bank holiday also played a part, with fewer working days this March than the year before, the industry group said.
The Nissan Leaf, which is made in Sunderland, is among the vehicles getting a revamp, with production of the current version having stopped last month and production of its successor set to begin again in 2026.
Likewise, the Mini plant in Oxford finished production of the Mini Clubman in February and started producing its fifth-generation Minis in March, with production of two all-electric models set to also begin from 2026.
Battery electric, plug-in and hybrid cars combined represented more than a third of all UK production in March, the data showed.
Overall in the first three months of 2024, 222,371 cars were produced, representing a 1.1pc rise compared to last year.
Almost three quarters of these were made for export.
Mike Hawes, chief executive of the SMMT, said: “This fall is not unexpected given the wholesale changes taking place within UK car factories as existing models are run out and more plants transition to electric vehicle production.
“We can expect further volatility throughout 2024 as manufacturers lay the foundations for a successful zero emission future.
“Recent investment announcements have boosted confidence and enhanced the UK’s reputation but there needs to be an unrelenting commitment to competitiveness.
“Free and fair trade deals must be secured, energy costs reduced and the workforce upskilled if we are to attract further investment to improve productivity and decarbonise automotive manufacturing and its supply chain.”
The SMMT expects car and light van production to fall 6.2pc this year to 940,000 vehicles, before returning to growth in 2025.
Output is anticipated to rise above one million vehicles again from 2026 and reach 1.2m before the end of the decade as more EV production starts across the UK.
