UK commercial vehicle production faces slight decline in first half of 2024
The forecast for the whole year is very positive though.
The UK commercial vehicle manufacturing sector experienced a minor decline in production during the first half of 2023, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). The industry saw a 2.9 per cent drop, with a total of 56,956 vans, trucks, taxis, buses, and coaches rolling off assembly lines. This decrease includes a 2.0 per cent reduction in June, primarily attributed to temporary supply chain disruptions.
Despite this year-on-year decline, the production levels remain impressive, especially when considering the exceptional first half of the previous year and the efforts to fulfill post-pandemic delivery backlogs. Currently, the year-to-date output is a notable 31.3 per cent higher than the five-year pre-pandemic average.
“While a decline in output is always disappointing, some normalisation following the CV sector’s rapid post-pandemic recovery was expected,” Mike Hawes, SMMT CEO commented. “The sector remains in good health with strong global demand for high-quality British-built CVs and plants ramping up EV production to meet current and future needs.”
The export market for UK-built commercial vehicles, particularly zero-emission vehicles, has shown resilience. Overseas shipments rose by 3.6 per cent in the first half of the year, reaching 39,168 units. This figure represents over two-thirds of the total production. The European Union remains the largest importer, accounting for 97.2 per cent of these exports, followed by smaller markets such as Australia (1.2 per cent) and the US (0.5 per cent). Unfortunately, this positive export performance was not enough to counterbalance the 14.8 per cent decline in the domestic market.
UK commercial vehicle production, H1 2024
The recent industry outlook, however, offers a silver lining. Independent forecasts predict that light CV production will increase to approximately 110,000 units by the end of this year. Looking further ahead, production volumes are expected to surpass 130,000 units by 2030, assuming favourable economic and trading conditions.
Source: SMMT
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