Vehicle manufacturers are calling for urgent measures to bolster the UK’s competitiveness and drive consumer demand following release of figures showing that combined car and commercial vehicle production fell 11.6 in February. The UK’s manufacturing viability is at risk, they argue.
Car output fell for the 12th month in a row, down 7.6% to 73,814 units with commercial vehicle volumes down 35.9% to 8,364 units. Industry body the Society of Motor Manufacturers and Traders (SMMT) has called for measures to boost the electric vehicle market and industrial competitiveness generally.
SMMT says the Chancellor’s Spring Statement offered no support for the industry or consumers, and represented a missed opportunity that will delay further the sector’s ability to deliver growth for the UK economy. “The forthcoming Industrial and Trade strategies must, therefore, be fast-tracked to signal the UK is open for business, and the £2 billion promised by government via the Automotive Transformation Fund rolled out immediately,” SMMT says.
SMMT says a strong new vehicle market is fundamental to growth, one that is increasingly electrified. Government must support all elements of road transport in this transition by cancelling the VED Expensive Car Supplement for EVs, cutting VAT on public charging and new BEV sales, extending the Plug-in Truck Grant and introducing mandatory targets for infrastructure rollout. This would back the industry’s billions of pounds of investment in new factories, models and discounts, and embolden consumers and operators to make the switch.
SMMT Chief Executive Mike Hawes said:”These are worrying times for UK vehicle makers with car production falling for 12 months in a row, rising trade tensions and weak demand. The market transition is not keeping pace with ambition and, while the industry can deliver growth – and green growth at that – it needs policies to deliver that reality.
“It was disappointing, therefore, to hear a Spring Statement that did nothing to alleviate the pressure on manufacturers and, moreover, confirms the introduction next month of additional fiscal measures which will actually dissuade consumers from investing. Without substantive regulatory easements our manufacturing viability remains at risk and the UK’s transition to zero emission mobility under threat.”