UK VEHICLE production in the first half of this year has dropped to its lowest level since 1953, excluding the Covid shutdown period, according to the Society of Motor Manufacturers and Traders (SMMT).
Car output declined by 7.3 per cent in the six months to June. Van production fell by 45 per cent, driven in part by the closure of Vauxhall’s Luton plant, the BBC reported.
The fall comes amid uncertainty over US tariffs, with some firms slowing or halting production earlier in the year.
A UK-US tariff deal, announced in May and effective from 30 June, reduced duties from 27.5 per cent to 10 per cent, and a small increase in production was recorded in June.
Mike Hawes, SMMT chief executive, said the figures were “depressing” and hoped the first half marked “the nadir” for the industry. He said the target of 1.3 million vehicles annually by 2035 was ambitious and would require at least one or two new manufacturers to set up in the UK.
Electrified vehicle production rose 1.8 per cent, making up over two in five vehicles. Last week, the government reinstated EV grants of up to £3,750 for models priced below £37,000, but the SMMT said the new scheme lacked clarity.
The government said it expects dozens of models to qualify for the grant and is working with manufacturers.
The £650 million fund will be awarded on a first-come, first-served basis.
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Modi and Starmer meet children playing cricket at Chequers.
Modi and Starmer having tea at Chequers.