The UK automotive industry faced significant challenges recently, particularly with car production witnessing a dramatic decline. Specifically, numbers for November 2024 revealed the lowest output since 1980, contributing to concerns about the future of manufacturing within the sector.
According to the Society of Motor Manufacturers and Traders (SMMT), the production figures for November showed scarily low numbers, with only 64,216 cars being produced. This marked an astounding 30.1 percent drop compared to the same month last year. Notably, this was the ninth consecutive month where production registered negative growth, underlining the persistent troubles plaguing the industry.
Mike Hawes, the SMMT Chief Executive, addressed the grim outcome, stating, "These figures offer little Christmas cheer for the sector. While a decline was to be expected... the sector." This bleak outlook mirrors broader industry concerns, with many attributing the bad news to various issues including strategic product decisions and shaky global market dynamics, as well as some quirky scheduling problems. The previous November had seen production numbers bounce back from pandemic-related disruptions, which makes this year's figures appear even more dire.
Adding to the complexity, the transition to electric vehicle (EV) production has also encountered hurdles. Major manufacturers are struggling to adjust and scale their production of electrified vehicles. When examining the production breakdown for electrified vehicles, it was reported there were merely 19,165 battery-electric, plug-in hybrid, and hybrid cars manufactured. While this showcases significant involvement of electrified models, it's still disconcerting to note it represented nearly one-third of total production and yet was down 45.5 percent year-on-year.
Year-to-date figures amplify these worries, reflecting a 12.9 percent downturn, which translates to just 734,562 units made so far. This puts the numbers alarmingly short of the nearly 1.2 million vehicles manufactured before the pandemic and the electric vehicle transition.
The stark truth is, production for domestic markets tanked by 56.7 percent, severely impacting jobs and supplier networks. Exports weren't faring much brighter, with numbers dipping by 21.3 percent. Interestingly, 80 percent of the cars produced still make their way overseas, with the bulk heading to the EU, highlighting the historical demand for UK-made vehicles, but not sufficiently balancing the overall slowdown.
Yet, the news isn't all doom and gloom. The UK's EV market is growing, albeit at a slower rate. By the end of 2023, there were over 850,000 battery-electric vehicles registered on UK roads. This surge indicates the potential demand for infrastructure supporting these vehicles. The government acknowledges this need and has set ambitious targets to establish 300,000 public charging points by 2030, significantly up from the current 45,000 units available nationwide.
Grants from the Office for Zero Emission Vehicles (OZEV) aim to support the installation of these charging points across various platforms, from residential homes to commercial setups. With funding initiatives rolling out, electricians have been prompted to gear up, preparing for expected increases in installation demands.
Electricians are now viewed as key players in the rollout of this charging network, with specialized training programs popping up to equip them with the right skills. For organizations like NICEIC and City & Guilds, offering courses focusing on charger installation and fault finding, there are significant opportunities to explore within this changing marketplace.
The growing success of EV sales highlights the importance of staying compliant and maintaining quality during installations. This includes being aware of electrical supply needs—whether single-phase 240V or three-phase 400V. Proper installation, checks, and certifications are integral to establishing public trust and ensuring the smooth operation of this necessary infrastructure.
To sum up, the UK automotive industry currently teeters on the brink, impacted by declining car production coupled with the urgent need for more EV charging stations. Balancing these two sides will be pivotal in shaping the nation’s automotive future. Immediate support is necessary from the government to transition smoothly through these turbulent times, allowing both producers and consumers to thrive within the new automotive ecosystem.
