by Tom Espiner
UK car production fell sharply in October amid industry concerns about "intense pressure" on investment in electric vehicle-making.
Output of all cars dropped by more than 15% from a year earlier, mainly due to a fall in exports following weak demand, the Society of Motor Manufacturers and Traders (SMMT) said.
Production of electric and hybrid vehicles declined by a third compared with last year, due to flagging European demand and the retooling of factories for new models.
The figures come after Vauxhall maker Stellantis said this week it would close its Luton van-making factory, partly due to rules imposed to speed up the transition to electric vehicles in the UK.
In addition, Ford said last week it would cut 800 jobs in the UK over the next three years because of difficult trading conditions, including intense competition and less demand for electric vehicles (EVs).
Mike Hawes, the SMMT’s chief executive, said: "These are deeply concerning times for the automotive industry, with massive investments in plants and new zero emission products under intense pressure."
Globally, demand for EVs has slowed, he said, while in the UK, manufacturers have to contend with "the toughest targets and most accelerated timeline" without the incentives necessary for customers to drive demand.
Although production of EVs fell in October, sales of electric cars in the UK have been increasing.
In October, they made up one out of every five cars registered, although industry sources insist this is largely down to unsustainable discounting.
There has been a growing row between the government and the industry over the sale of new petrol and diesel cars being phased out over the next few years.
Under the UK’s zero emissions vehicle (ZEV) mandate, manufacturers are currently required to sell a certain percentage of cars and vans that do not emit any emissions ahead of a 2030 ban on the sale of new petrol and diesel cars.
In 2024, EVs must make up 22% of a carmaker’s car sales, and 10% of van sales. This target is set to rise.
For every sale that pushes it outside the mandate, firms must pay a £15,000 fine - but they can also buy "credits" from firms that can meet this mandate.
Business Secretary Jonathan Reynolds has said there will be a "fast track" consultation of how the EV targets are enforced.
However, he also reiterated Labour’s commitment to the 2030 phase-out of new petrol and diesel vehicle sales.
A spokesperson for the Department for Business and Trade said the government knew the industry "needs certainty and stability" and was investing £2bn in car manufacturing and more than £300m to support the uptake of electric vehicles.
"We continue to work closely with the sector to make the transition a success," the spokesperson added.
*first published in: Bbc.com
By: N. Peter Kramer
