UK business car (CV) manufacturing declined -15.5% in 2020, with simply 66,116 vans, vans, taxis, buses and coaches leaving manufacturing strains, in response to the newest figures launched right this moment by the Society of Motor Producers and Merchants (SMMT). December output was down -9.2%, rounding off a weak quarter and terrible yr for the CV sector which turned out 12,154 fewer items than in 2019. The coronavirus pandemic, with social distancing measures and a number of lockdowns all year long, badly affected manufacturing capabilities and demand, whereas uncertainty proper up till the top of the Brexit transition interval dented enterprise confidence.
These points meant manufacturing for each the abroad and home markets declined, down -17.8% (at 37,893) and -12.2% (at 28,223) respectively. However, nearly six out of each 10 business autos constructed within the UK in 2020 had been exported, with the important thing market, the EU, putting nearly all of orders for British-built CVs (94.9% export share). Whereas the EU was by far the sector’s largest abroad buyer, 670 items had been exported to Israel, 288 to Taiwan, and 248 to Russia, in addition to exports going to greater than 50 different nations.
Mike Hawes, SMMT Chief Government, mentioned,
2020 challenged business car producers past perception and, as the ultimate figures present, replicate what has been the worst yr in a lifetime for the sector. The pandemic hit markets throughout Europe whereas extended uncertainty threatened enterprise confidence at dwelling, as a possible ‘no deal’ Brexit loomed over the business for a lot of the yr and was solely put to relaxation on Christmas Eve. Nonetheless, with the vaccine rollout now in full swing and the required readability companies want for cross-channel buying and selling necessities now seen, there may be hope for the longer term.
2021 should be centered on restoration and development for business car manufacturing. This begins with offering the appropriate circumstances to each appeal to funding and speed up the take up of alternatively fuelled autos – an important subsequent step on the best way to a speedy and profitable sector transition within the UK.
1. Output at lowest stage since 1933 – 65,508 business autos.
SOURCE: SMMT
