Latest news with #SocietyforMotorManufacturersandTraders
Yahoo
3 days ago
- Automotive
- Yahoo
UK car production falls sharply in April
The number of vehicles manufactured in the UK fell sharply last month, as tariffs and the timing of Easter hit production. The 59,203 vehicles made was the lowest April output for more than 70 years, with the exception of 2020, when production effectively stopped during the Covid lockdown. The Society for Motor Manufacturers and Traders (SMMT) said a wider change in the industry as it shifts from petrol cars to electric vehicles (EVs) had also temporarily reduced output. However, new trade deals with the US, EU and India may help boost upcoming production, the industry group said. The April figure was 16% lower than the same month last year, and 25% lower than March, when numbers were likely to have been boosted by manufacturers shipping more cars to the US before President Trump's tariffs kicked in. The fact that Easter fell in April this year, which meant there were fewer working days, was also a factor, the SMMT said. The lowest April output before that - outside the pandemic - was back in 1952, when 53,517 vehicles were produced. Car production for exports fells by 10.1%, said the SMMT, driven by falls in demand from the UK's biggest export markets the US and EU. The group said the total number of vehicles manufactured in the UK for the first four months of the year was the lowest since 2009. The downward trend in production is similar in other countries, said Prof Peter Wells, director of the Centre for Automotive Industry Research at Cardiff University. "There are concerns in Germany, Italy, France and Japan," he told the BBC. "So I would emphasise that there is this bigger picture going on, and it's not purely a UK phenomenon." However, some of the global pressures may be stronger in the UK, Prof Wells said, such as fewer trade barriers against Chinese imports compared to the EU and US. The UK government's change in policy over encouraging more manufacturing of EVs had also made planning more difficult for carmakers, he added. In April, the UK announced plans to relax sales targets for EVs and reduce fines for cars that do not meet certain emissions standards. In recent years, the UK has seen producers such as Honda and Ford shut down plants. Last year, Stellantis - which makes Vauxhall, Citroen and Peugeot cars - warned it may have to halt UK production due to uncertainty over the government's approach to EVs. "What industry always wants is stability and clarity in policy, whether it's tariffs or electrification or any other issue," said Prof Wells. "For me at least, it remains a volatile environment in that sense."
Sky News
26-02-2025
- Automotive
- Sky News
Electric car demand reaches record high in January but misses target
Demand for electric vehicles accelerated in January, with fully battery-powered cars outperforming an overall contraction in the car market that the industry blames on declining business and consumer confidence. Battery EVs (BEVs) accounted for 21% of almost 140,000 new car registrations in January, the highest-ever share for the month and a year-on-year increase of 41.6%. It establishes BEVs as the second-largest sector of the new car market, behind only petrol, which contracted by 15% to make up just over 50% of registrations. In an overall market that shrank by 2.5%, diesel registrations declined to just over 6% of registrations. Hybrid electric made up 13% of the market, and plug-in hybrids 9%, underlining the consumer shift towards full or partial electric powertrains. Despite the growth of electric sales, manufacturers continue to warn that the market will not support the growth required to hit government EV targets, and called for consumer incentives and the extension of tax breaks. Under net-zero targets introduced by the last government, manufacturers will face fines of £15,000 per vehicle if electric vehicle sales fall short of 28% of total production this year, an increase from 22% in 2024. The new government says it is committed to the total phase-out of new petrol and diesel car sales in 2030 but is currently reviewing the target regime to allow greater flexibility. Manufacturers who fall short of their target can buy credits from competitors who exceed EV market share, or offset them against emission reduction elsewhere in the business. Last year this allowed the industry to hit its 22% target despite vehicle sales of just below 20%. 0:22 The Society for Motor Manufacturers and Traders warned that EV sales are on course to hit only 23.7% this year, and that will only be achieved through discounting that it says cost the industry £4.5bn last year. With the market largely driven by company fleet sales, which benefit from tax breaks, the SMMT called for consumer incentives to support private purchases and urged the abandonment of plans to introduce vehicle excise duty (VED) in April. The plans will see BEVs costing more than £40,000, currently tax-exempt, subject to the 'expensive car supplement'. "January's figures show EV demand is growing - but not fast enough to deliver on current ambitions," said chief executive Mike Hawes. "Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers. "The application, therefore, of the 'expensive car supplement' to VED on electric vehicles is the wrong measure at the wrong time. "Rather than penalising EV buyers, we should be taking every step to encourage more drivers to make the switch, helping meet government, industry and societal climate change goals." Thinktank the Energy and Climate Intelligence Unit hailed the figures as an encouraging start to the year, and said the British car industry was on course to hit its annual target if EV sales followed recent patterns of growth. "It's a record-breaking January for EV sales, and the sixth month on the bounce in which more than one in five new cars sold in the UK was an EV," said transport lead Colin Walker. "This comes on the back of the car industry as a whole successfully complying with the government's EV targets in 2024, with prices driven down as manufacturers compete for sales. "Last January, EVs accounted for 14.7% of all cars sold, but sales grew throughout the year, allowing the industry as a whole to comply with the ZEV mandate in its first year. This has been a stronger start to the year, meaning the car industry looks even better set to hit its EV targets in their second year."
Sky News
05-02-2025
- Automotive
- Sky News
Electric demand reaches record high in January but misses target
Demand for electric vehicles accelerated in January, with fully battery-powered cars outperforming an overall contraction in the car market that the industry blames on declining business and consumer confidence. Battery EVs (BEVs) accounted for 21% of almost 140,000 new car registrations in January, the highest-ever share for the month and a year-on-year increase of 41.6%. It establishes BEVs as the second-largest sector of the new car market, behind only petrol, which contracted by 15% to make up just over 50% of registrations. In an overall market that shrank by 2.5%, diesel registrations declined to just over 6% of registrations. Hybrid electric made up 13% of the market, and plug-in hybrids 9%, underlining the consumer shift towards full or partial electric powertrains. Despite the growth of electric sales, manufacturers continue to warn that the market will not support the growth required to hit government EV targets, and called for consumer incentives and the extension of tax breaks. Under net-zero targets introduced by the last government, manufacturers will face fines of £15,000 per vehicle if electric vehicle sales fall short of 28% of total production this year, an increase from 22% in 2024. The new government says it is committed to the total phase-out of new petrol and diesel car sales in 2030 but is currently reviewing the target regime to allow greater flexibility. Manufacturers who fall short of their target can buy credits from competitors who exceed EV market share, or offset them against emission reduction elsewhere in the business. Last year this allowed the industry to hit its 22% target despite vehicle sales of just below 20%. 0:22 The Society for Motor Manufacturers and Traders warned that EV sales are on course to hit only 23.7% this year, and that will only be achieved through discounting that it says cost the industry £4.5bn last year. With the market largely driven by company fleet sales, which benefit from tax breaks, the SMMT called for consumer incentives to support private purchases and urged the abandonment of plans to introduce vehicle excise duty (VED) in April. The plans will see BEVs costing more than £40,000, currently tax-exempt, subject to the 'expensive car supplement'. "January's figures show EV demand is growing - but not fast enough to deliver on current ambitions," said chief executive Mike Hawes. "Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers. "The application, therefore, of the 'expensive car supplement' to VED on electric vehicles is the wrong measure at the wrong time. "Rather than penalising EV buyers, we should be taking every step to encourage more drivers to make the switch, helping meet government, industry and societal climate change goals." Thinktank the Energy and Climate Intelligence Unit hailed the figures as an encouraging start to the year, and said the British car industry was on course to hit its annual target if EV sales followed recent patterns of growth. "It's a record-breaking January for EV sales, and the sixth month on the bounce in which more than one in five new cars sold in the UK was an EV," said transport lead Colin Walker. "This comes on the back of the car industry as a whole successfully complying with the government's EV targets in 2024, with prices driven down as manufacturers compete for sales. "Last January, EVs accounted for 14.7% of all cars sold, but sales grew throughout the year, allowing the industry as a whole to comply with the ZEV mandate in its first year. This has been a stronger start to the year, meaning the car industry looks even better set to hit its EV targets in their second year."
