UK witnessed a 59.3% decrease in commercial vehicle production in May 2024, marking the third consecutive month of decline, the Society of Motor Manufacturers and Traders (SMMT) has reported.
The industry body has attributed this downturn to ongoing supply chain challenges that have disrupted manufacturing processes.
Last month, UK factories rolled out a total of 4,400 commercial vehicles, including trucks, vans, taxis, buses, and coaches.
This figure contrasts sharply with the 10,817 units produced in the same month last year, which was the highest output since 2008.
SMMT said last year’s growth was driven by efforts to meet the pent-up demand following the Covid pandemic.
Exports, which accounted for over two-thirds (68.8%) of the total production, saw a 61.9% reduction to 3,027 units last month.
The EU remained the main export destination, receiving 95.9% of the total vehicles shipped overseas.
Domestic production also suffered, with only 1,373 units made for the UK market, indicating a 52.2% drop.
The cumulative production for the year to date has decreased by 3.2% to 45,439 units, representing a loss of 1,492 units.
Despite the overall decline, demand for British-built vehicles in international markets has grown, with exports increasing by 5.9% to 31,688 units.
Approximately 69.7% of commercial vehicles produced this year have been for export.
However, the number of vehicles manufactured for the UK market has fallen by 19.1% to 13,751 units.
The industry anticipates a recovery in these figures as production stabilises over the year, SMMT noted.
SMMT chief executive Mike Hawes said: “The recent downturn is obviously disappointing, but is temporary and, as supply chain disruptions are resolved, output should be back on track.
“With the general election now just a week away, the next government must ensure we have the conditions necessary for growth which means maintaining favourable market conditions, improving the competitiveness of UK manufacturing and ensuring trade flows are as free and fair as possible.”
“UK commercial vehicle production slumps 59% in May 2024” was originally created and published by Motor Finance Online, a GlobalData owned brand.
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