UK commercial vehicle manufacturing continued its sharp year-on-year decline in February, the latest SMMT data shows, with output down -74.0% to 2,176 units compared with the same month last year. Exports were down -65.1% to 1,306 units, with almost nine in 10 shipments going to the EU, while production for the UK was more acutely affected, down -81.2%, to just 870 units.
The declines reflect the impact of a major plant restructuring in March last year to produce zero emission vehicles, as the global industry adapts its manufacturing base for decarbonisation. With the proposed consolidation of bus manufacturing in Scotland this week to produce more low and zero emission models, safeguarding jobs and investment across our sector must be a top priority for government.
SMMT has long made clear that a green transformation strategy is needed to reduce Britain’s industrial energy prices would be among the most effective steps. Our recent Electrified analysis shows prices remain 80% higher in 2026 than expected five years ago – and the need for government action has only become more urgent given rising fuel and energy prices in recent weeks.
A thriving domestic market for the vehicles we build here is also essential to attract new investment into our manufacturing base. With the UK increasingly focused on making zero emission models, government’s new guidance on its Plug-in Truck and Van Grants is welcome – offering savings of up 40% on zero emissions HGVs, while continuing to offer discounts of up to £5,000 on electric vans.
The funding will help bring TCO parity between zero emission and conventionally fuelled models, but further steps are needed – particularly given the cost of depot infrastructure installation, and a paucity of public charging infrastructure suited to larger vehicles. Supportive energy measures would send a positive signal – that fleet operators can run their fleets more affordably on electric while reducing exposure to fuel price uncertainty.
With energy under the spotlight amid instability in the Middle East, green energy measures can help UK industry – manufacturers and operators alike – consider future investment and decarbonisation with more confidence.
