Today, SMMT has published the latest UK commercial vehicle (CV) manufacturing figures for August – showing that year on year, production is down -10.0% with 6,044 units rolling out of UK factories.
Context, however, is important. August is a low output month due to the traditional ‘summer shutdown’, meanwhile percentage changes are amplified – and the decline was equivalent to just 673 fewer units. Year to date, volumes are still 8.8% up on 2019’s pre-pandemic output. Exports continued to dominate output with more than half of output (59.3%) produced for overseas markets, with the EU receiving the lion’s share (97.2%).
With vehicle production so important to the UK economy, it’s no surprise that the new government is committing to boosting the jewel in the crown of UK manufacturing base, the automotive industry – as outlined in Labour’s plan for the Automotive Sector, with key aspects like building an electric vehicle (EV) workforce and accelerating domestic battery manufacturing. They also recognise that while it’s important to focus on finished vehicle and battery production, there is a wealth of further opportunity for supply of other essential EV components such as powertrains, fuel cells and power electronics.
Making sure the nation benefits from the technology the sector provides is also crucial. Last week, the government announced £88 million of funding for 46 projects aimed at boosting development and use of zero emission vehicle tech. Projects include deploying zero emission trucks delivering our post, and cleaner, greener bus journeys. In short, the funding will back projects that will lower emissions across the country, while also supporting skilled jobs.
The Faraday Institution also published a report that predicts by 2030, the UK will need battery capacity of around 110 GWh per annum, the equivalent of six gigafactories. Recent gigafactory announcements in the UK by AESC and Tata Group have built excitement about the potential to create a new, dynamic and highly skilled battery industry in the UK. With huge investment needed for the other four gigafactories, we look forward to the government’s mission is to create a strong, stable and pro-business economy, with the UK remaining an attractive destination for investment for the automotive industry.
Finally, the Government have also suggested six things to fix the NHS, one being mobile lung cancer screening trucks for testing people at supermarkets, sports centres and football grounds. Last year I visited the facility that builds these screening trailers in Leicestershire and saw firsthand the workmanship that goes into building these by hand from the skilled workforce.
The UK can be proud of our commercial vehicle manufacturing from small electric vehicles, large trucks and medical trailers – and with a clear strategy, it will continue to thrive.