UK car production dropped to 780,000 in 2024, the worst since 1954, as factories shift to EVs

The UK’s car manufacturing industry has hit a historic low, with production falling to just 780,000 vehicles in 2024—the lowest figure since 1954, excluding the pandemic years. The decline underscores the deep challenges facing British carmakers as they navigate weak demand, factory shutdowns, and the transition to electric vehicles (EVs).

The Society of Motor Manufacturers and Traders (SMMT) reported that production slumped by 12% compared to 2023. The UK’s last major downturn in manufacturing came during the COVID-19 crisis when factory closures and supply chain issues crippled output. However, this latest decline is driven by a combination of global economic uncertainty, shifting production lines for EVs, and falling consumer demand.

Factory Pauses and EV Hesitation

Mike Hawes, CEO of SMMT, pointed to production pauses as carmakers retooled for electric vehicle manufacturing. However, the shift to EVs has been slower than expected, with demand struggling to keep pace with government mandates for zero-emission vehicle sales.

Jaguar Land Rover (JLR), the UK’s second-largest carmaker, halted all Jaguar production in 2024 to prepare for its all-electric relaunch, a move seen as bold but polarising. Meanwhile, Nissan, the UK’s top car producer, saw output at its Sunderland plant drop by 13%. The transition has been further complicated by the UK’s zero-emission vehicle mandate, which forces automakers to sell an increasing percentage of EVs annually—rules that manufacturers hope will be relaxed.

Global Market Pressures and Brexit Fallout

The UK’s position as a major car exporter remains under threat. Brexit-related instability has already contributed to multiple plant closures, and now, looming US import tariffs under a possible second Donald Trump presidency could add further pressure. The UK exports a significant number of luxury vehicles to the US, and while high-end buyers may absorb additional costs, mass-market brands face an uncertain future.

Additionally, Stellantis, the owner of Vauxhall, dealt another blow to UK manufacturing by shifting production at Ellesmere Port from cars to vans in 2021 and later announcing the closure of its Luton factory in late 2023. The shift has further depressed overall production figures.

A Distant Recovery?

Industry analysts predict that it may take until 2028 for UK vehicle production—cars and vans combined—to exceed one million units again. This forecast falls far short of the ambitious 2 million targets set in 2017 before Brexit turbulence and the pandemic shook the sector.

Hawes remains cautiously optimistic, suggesting that government intervention, such as loan guarantees for EV buyers and subsidies, could help stabilise the market. However, he emphasised that incentives must be “substantial” to make a meaningful impact.

For now, British car manufacturing is in survival mode, with its high-volume production era looking increasingly like a relic of the past.