CV production crashes 41% in March

UK commercial vehicle (CV) production fell 41.8% in March, with 5,219 units leaving production lines.

The Society of Motor Manufacturers and Traders (SMMT) found that some 3,807 fewer vans, trucks, taxis and buses left factory gates than in the same month last year.

Output for the domestic market fell 43.4%, while production for export declined 40.6%. The EU, the UK’s biggest trading partner for commercial vehicles, saw a drop in exports of 43.3%, with 2,762 units shipped to Europe. Year-to-date commercial vehicle production has now fallen 22% with 21,473 units manufactured in the first quarter, some 6,000 fewer than in the first quarter of 2019.

Mike Hawes, SMMT chief executive, said: “The foundations of UK commercial vehicle production are strong, but manufacturers have been hit hard by the pandemic and factory shutdowns are costing the sector and economy billions. While many businesses have stayed open to ensure continued production of parts so that essential vehicles can stay on the roads to support nationwide response, we need to get all production lines rolling and delivering for the economy again.

“This means implementing a package of measures that supports the entire automotive industry, from retail through supply chains to vehicle manufacture. This should be seen as long-term investment into the underlying competitiveness of a sector critical to the health of the UK economy and the livelihoods of thousands of households right across the UK.”

The wider CV sector has been crucial to the delivery of essential goods and services during the pandemic, but a successful restart of vehicle production will require a clear plan and close coordination and cooperation between government and industry built on four pillars. These include re-opening automotive retail and stimulating demand, a ramping up of safe and sustainable production, securing and supporting resilient supply chains and ensuring a supportive regulatory framework is in place. Particularly crucial for the CV sector is guidance on what a safe restart would look like for manufacturers, and a plan for a whole sector restart to restore operator confidence so that they can continue to invest in the latest, most efficient and cleanest technology for their fleets.