Automotive News – Early February 2025
Estimated reading time 3 minutes
Vehicle production dips amid EV transformation and intense market pressure.
- British vehicle production slips -11.8% to 905,233 units in 2024, with cars down to 779,584, as industry continues transformation to EV production.
- 4.0% growth in commercial vehicle production fails to offset -13.9% decline in car output.
- Potential to surpass one million cars and light vans in 2028 if markets improve and model launches stay on track.
- Sector calls for government to fast track industrial and trade strategies for automotive manufacturing. https://www.smmt.co.uk/2025/01/vehicle-production-dips-amid-ev-transformation-and-intense-market-pressure/
Exports push CV production to best performance in 16 years.
- British commercial vehicle production rises 4.0% to 125,649 units in best year since 2008.
- Exports drive growth, up 6.6% to 82,097 units as output for UK market dips -0.8%.
- Sector calls for fast tracked industrial and trade strategies to keep UK manufacturing globally competitive.
EV share rises despite contracting market, but tax hikes threaten targets.
- EVs take more than a fifth of new car registrations as overall market contracts by -2.5% to 139,345 units.
- Slowdowns recorded by both fleet and private buyers against backdrop of weak economic confidence.
- Industry calls for halt to EV tax hikes as latest outlook anticipates 23.7% market share for 2025 – below government targets. https://www.smmt.co.uk/2025/02/ev-share-rises-despite-contracting-market-but-tax-hikes-threaten-targets/
Light commercial vehicle market declines in January.
- New light commercial vehicle market shrinks by -20.5% in January.
- Decline in demand for large and medium vans, pick-ups and 4x4s, but rise in small van uptake.
- Electric van deliveries up 12.4% but substantial growth needed to meet UK ambitious mandate.
- New 2025 outlook anticipates -1.2% market decline – with rising EV uptake still short of target. https://www.smmt.co.uk/2025/02/light-commercial-vehicle-market-declines-in-january/
The owner of Vauxhall has told staff it will close its van-making factory in Luton in April.
Stellantis announced it would shut the site, which has been making vehicles since 1905, in November as it planned to move its electric van production to its other UK plant in Ellesmere Port, Cheshire.
After work ceases in Luton, machinery will be transferred to Ellesmere Port and production on Vauxhall’s medium all-electric vans will commence in 2026.
Honda and Nissan have announced that they are ending talks of a merger, adding that they will continue their partnership on electric vehicles.
The Japanese car makers, along with junior partner Mitsubishi, aimed to combine their businesses to fight back against competition from rival firms, especially in China.
