British vehicle production plunges as factories pivot to electric cars

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.