The UK’s commercial vehicle (CV) manufacturing sector recorded its best performance in 16 years for the first 10 months of the year, despite a slight production decline in October. According to the Society of Motor Manufacturers and Traders (SMMT), 105,834 CVs were produced between January and October, marking a 6.9% year-on-year increase.
October Performance Overview
In October alone, CV production fell by 3.9% compared to the same month in 2022, with 12,387 vehicles manufactured. This dip is notable given the record-breaking performance in October 2022, when production surged by 47.5%, making it the strongest October since 2008. Despite this decline, October 2023 came close, falling short by only 503 units.
Export and Domestic Markets
Exports accounted for a significant portion of the production, with more than 60% of vehicles destined for overseas markets. However, shipments dropped by 11.6% to 7,680 units. The European Union remained the primary export destination, receiving 97.9% of these vehicles.
In contrast, the domestic market saw a positive trend, with production rising by 11.9% to 4,707 units in October. Year-to-date figures show a modest 0.8% decline in UK-focused production, totaling 36,492 units, while exports recorded a double-digit growth of 11.4%, reaching 69,342 units.
Industry Resilience and Challenges
SMMT Chief Executive Mike Hawes acknowledged the sector’s resilience amidst challenges, citing a slight October dip as part of the natural fluctuations caused by the industry’s shift toward zero-emission vehicles (ZEVs). He emphasised the importance of maintaining the sector’s global competitiveness, calling for policies that address affordable energy costs, skills development, and robust domestic demand for electrified commercial vehicles.
Push for Zero-Emission Vehicles
The production figures coincide with increased pressure on van manufacturers to meet the UK Government’s ZEV mandate, which requires 10% of all new van sales to be electric in 2024. The government recently announced plans for a “fast track” consultation on electric vehicle sales targets to support the transition.
While October’s figures showed a temporary decline, the long-term trend reflects strong growth and adaptability within the UK’s commercial vehicle manufacturing sector. The industry’s ability to innovate and respond to emerging challenges, such as the transition to zero-emission vehicles, will be critical for sustaining this momentum in the years to come.
