Britain’s car manufacturers have called for urgent changes to electric vehicle targets and lower energy costs as the latest industry data showed continued pressure on vehicle production, This is Money reported.
UK car production fell 10.6 per cent year on year to 61,767 units in July, according to the Society of Motor Manufacturers and Traders (SMMT). Production during the first seven months of the year was 433,523 units, down 4.7 per cent from the same period last year.
The decline comes as manufacturers face difficulties in meeting government requirements to increase the share of electric vehicles sold in the UK. Companies that fail to meet the targets could face fines.
Electric vehicles accounted for one in four new cars sold in the UK so far this year, below the 33 per cent target set for 2026. Under the current zero-emission vehicle (ZEV) rules, the target is due to rise to 80 per cent by 2030.
The government said earlier this month that it would ease the targets because the uptake of electric vehicles had been slower than expected.
The latest SMMT figures showed some improvement in the production of lower-emission vehicles. Output of fully electric and hybrid cars increased 6.8 per cent year on year to 25,678 units in July. Such vehicles now account for more than four in 10 cars produced in the UK.
At the same time, manufacturers are facing industrial energy costs that are 60 per cent higher than those paid by competitors in Europe. The industry is also concerned that proposed changes covering vehicles made in the European Union could make British-made cars less competitive in the European market.
SMMT chief executive Mike Hawes said July’s figures reflected the “intense pressure” facing UK vehicle manufacturers.
He said part of the decline was linked to the timing of normal summer factory shutdowns and changes to vehicle models, but these factors were compounded by weaker overseas demand and strong competition in global markets.
Hawes said the increase in production of electric and hybrid vehicles was encouraging, but argued that the long-term future of UK vehicle manufacturing depended on improving the country’s competitiveness.
He called for urgent changes to the ZEV rules, lower energy costs and negotiations to protect free and fair trade with the UK’s largest nearby export market to help the automotive industry return to growth.
