Will British brands be able to survive if their production numbers don’t go up next year?
British car brands have seen their production numbers plunge to the lowest they have ever been in over 40 years, a worrying trend that highlights the struggles faced by automakers in the UK as they grapple with a sharp decline in demand. So what exactly is going on here? Is this because British brands have dropped in quality or is competition too stiff?
According to the Society of Motor Manufacturers and Traders (SMMT), just 64,216 new cars were produced in the UK last month, marking a significant 30 percent drop compared to the same period last year. This downturn reflects broader challenges within the industry, with all major automakers in the country experiencing a decline in production.
Moreover, the SMMT also pointed out a particularly concerning trend in electric vehicle (EV) production, which has seen a nearly 46 percent drop in output. Not too surprising considering China has a chokehold on the global EV market with brands like BYD producing some of the most stylish and sought after EVs of today.
This grim outlook comes at a time when the UK government is under increasing pressure to ease the transition to EVs, with industry leaders warning that the stringent EV targets set by the government could result in factory closures and significant job losses. These concerns have been amplified by the poor economy, which puts immense strain on manufacturing industries.
The automotive sector, in particular, has also been hit hard by a combination of factors, including reduced consumer demand, global supply chain disruptions and rising production costs. So far in 2024, car production in the UK has fallen by nearly 13 percent compared to 2023, with a total of 734,562 vehicles produced.
On top of that, the decline in production is further compounded by the uncertainty surrounding the transition to EVs in the West. Many manufacturers are still adjusting to the changes required to meet future EV targets, and the ongoing challenges in securing the necessary supply of raw materials and components are hindering progress.
SMMT chief executive Mike Hawes acknowledged the difficulties faced by the sector, stating, “These figures offer little Christmas cheer for the sector. While a decline was to be expected given the extensive changes underway at many plants, manufacturing is under pressure both domestically and internationally.”
One major factor no one is discussing right now is the fact that China is simply doing it better. As far as EVs go, they make more cars, more batteries, offer better packages and discounts and most importantly are significantly cheaper even with tariffs put on them. This is, in my opinion, the biggest factor as to why British car production numbers are so low.
