Manufacturing figures for July underline both the immediate pressures facing UK commercial vehicle production and the scale of the opportunity if the right conditions for investment can be secured.
Commercial vehicle output fell by 34.4% in July to 1,888 units, with production for UK customers down 49.6% and exports declining 18.5%. This contributed to an 11.6% fall in total UK vehicle production to 63,655 units, while exports across the automotive sector dropped 15.9%.
Commercial vehicle production can fluctuate from month to month as plant schedules, model cycles and shifts in demand affect relatively low volumes. Even so, July’s figures reinforce the need to maintain confidence in the UK as a competitive manufacturing location. The sector’s importance extends well beyond manufacturing output: commercial vehicles are key to keeping goods, people and essential services moving, while supporting skilled employment and supply chains across the country.
There is a strong platform on which to build. UK manufacturing maintains deep engineering expertise, established research and development capability, growing capability in zero-emission technologies. The transition to low and zero emission commercial vehicles can open new opportunities in vehicle assembly, batteries, power electronics, lightweight materials and depot charging, provided policy supports both manufacturers and operators.
The government’s review of the ZEV Mandate is therefore timely – and needs to be completed with urgency to give industry certainty – but competitiveness is also vital to future success. Industrial energy costs are expected to remain around 60% above those in Europe even after the forthcoming British Industrial Competitiveness Scheme (BICS) is implemented.
At the same time, proposed “Made in the EU” requirements and tougher UK-EU rules of origin risk adding further complexity to cross-Channel supply chains. Commercial vehicles are often lower-volume, highly specialised products, making predictable trading arrangements and competitive production costs especially important.
With a joined-up approach to regulation, energy, trade and infrastructure, the UK can turn today’s challenging numbers into tomorrow’s growth. Supporting commercial vehicle manufacturing will not only strengthen automotive output; it will help modernise the fleets that keep Britain moving and position the country to compete in a rapidly changing global market.
