UK car making falls to 1950s levels as drive to go green wreaks havoc in the industry

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UK car production slumped to 1950s levels last year as the drive to go green wreaked havoc on the nation's motor makers.

The Society of Motor Manufacturers and Traders (SMMT) said the number of cars made in Britain fell 14 per cent to 779,584 units in 2024. 

It means UK vehicle makers have failed to surpass the one million units mark any year since the pandemic. 

Apart from 2022, when disruption to global supply chains following the Covid-19 pandemic hit production, this was the lowest number since 1954.

SMMT boss Mike Hawes said the industry was at a ‘low ebb’ amid a switch to electric vehicles (EVs) and push to meet Government quotas.

In a blow to the green transition, production of all-battery powered vehicles and hybrids fell by 20 per cent to 275,896 amid weak demand for EVs from buyers worried about high prices and a lack of charging points. 

The crisis in the industry was underlined last year when Vauxhall owner Stellantis announced plans to close its Luton plant, which put 1,100 jobs at risk.

UK car production slumped to 1950s levels last year as the drive to go green wreaked havoc on the nation's motor makers, official manufacturing statistics show

The SMMT insisted the decline in electric car production will be ‘temporary’ – pointing to £20billion of investment unveiled in 2023 and £3.5billion last year. 

Hawes said: ‘UK manufacturers are set on turning billions of pounds of investment into production reality, transforming factories to make EVs.

‘Growing pains are inevitable, so the drop in volumes last year is not surprising. With new, exciting models and battery production on the horizon, the potential for growth is clear.’

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Britain's biggest car producer, Nissan, saw a 13.2 per cent decline in outputs last year, making almost 43,000 fewer vehicles than it did in 2023 as units dropped from 324,893 to just 282,124.

The Sunderland plant is the European manufacturing hub for Qashqai and Juke crossovers and also assembles the Leaf EV. 

The most significant percentage fall was recorded by Mini at its Oxford plant.

The Crowley factory turned out 40.1 per cent fewer new models last year than it did in the 12 months previous.

This comes after it shifted production of some of its electric cars to China in a deal with Great Wall Motor.

It will, however, bring manufacturing of these battery vehicles back to the Oxford site in 2026 under existing plans, once it has completed a £600million investment into the plant to prepare it for a future of making EVs. 

Toyota's Burnaston factory in Derbyshire - where it produces the Corolla - also posted a fall in production down 19.8 per cent while luxury maker Bentley said it had made 16.2 per cent fewer motors in 2024 than it had in 2023.

Apart from 2022, when disruption to global supply chains following the Covid-19 pandemic hit production, last year sae the lowest output of cars from UK assembly lines since 1954

Britain's biggest car producer, Nissan , saw a 13.2% decline in outputs last year, making almost 43,000 fewer vehicles than it did in 2023. Pictured: Nissan Qashqais - the UK's most exported new model of 2024 - being loaded onto a ship headed for overseas markets

Fresh off the back of announcing its strongest third-quarter turnover result on record, SMMT stats show JLR's UK production increased last year by 7.8%. This is despite the company halting production of new Jaguars in Britain (pictured: Castle Bromwich factory)

Concerns: SMMT boss Mike Hawes said the industry was at a ‘low ebb’ amid a switch to EVs and push to meet Government quotas

The one manufacturer to increase outputs was JLR.

Fresh off the back of announcing its strongest third-quarter turnover result on record after enjoying improved wholesale volumes, SMMT stats show its UK production increased last year by 7.8 per cent to 257,110.

This was underpinned by the popularity of its latest Land Rover models, including Defender and all-new versions of both the Range Rover and Range Rover Sport. 

The luxury vehicle maker, whose parent company is Indian conglomerate Tata, said on Wednesday that its revenues had increased by 2 per cent year-on-year in the three months ending December to £7.5billion.

Its strong 2024 production volumes is despite the manufacturer winding up production of all Jaguar models by the end of last year - some discontinued in the first half of the year - as it pushed ahead with plans to become an all-electric brand with a fleet of new EVs.

In preparation for this, it has wound up outputs of XE and XF saloons, and F-Type sports cars at its Castle Bromwich site in May.

Production of its biggest model - F-Pace - will continue in Solihull for the foreseeable, however this will only be outputs for overseas markets. A spokesperson for the brand confirmed UK-spec production terminated in November.