NAA Update: The UK automotive industry continues to undergo huge transformation amid strong global headwinds
We have a world-leading automotive industry with a highly skilled workforce, globally renowned R&D and established brands, but we need a regulatory and investment environment that enables UK automotive manufacturers to thrive – the long-awaited Industrial Strategy, expected to be published this month, must do just that.
Welcome to this month’s newsletter and I hope you are all keeping well.
The challenging start to the year for UK automotive manufacturers continued into April, with the latest SMMT data out last month showing vehicle output at a 70-year low for the month. The performance is a reflection of our industry undergoing huge transformation amid strong global headwinds. For the passenger car sector, weak demand in key markets and model changeovers have constrained production, while lower commercial vehicle output follows plant consolidation and normalising demand following major post-pandemic investments by fleet operators and other buyers.
The majority of vehicles made in Britain are produced for overseas markets so it is unsurprising fewer cars and commercial vehicles were exported in April, but the EU remained by far our largest market with more than half of all exports heading there. Given the importance of our trading with the bloc, last month’s UK-EU trade agreement, although not specifically concerning automotive trade but coming on the back of those with the US and India, provides a necessary platform to build upon. We need such strong foundations to ensure the UK remains an attractive destination for investment from global businesses which will support economic growth.
We have a world-leading automotive industry with a highly skilled workforce, globally renowned R&D and established brands. But with countries around the world vying for major investment in their own industries, we need a regulatory and investment environment that enables UK automotive manufacturers to thrive – rather than merely survive. The long-awaited Industrial Strategy, expected to be published this month, must do just that. Such a strategy must also boost the supply chain and aftermarket.
The Chartered Institute of Export and International Trade, who we work together with, has recently published an article “Protecting Auto Supply Chains Amid Shifting Tariff Risks”, which you may find helpful – further details can be found here.
Moving on to the membership side, we welcome three new members this month:
K Hartwall – A global leader in developing and manufacturing advanced intralogistics solutions, serving customers across Retail, Parcel & E-commerce, and Manufacturing industries in over 65 countries worldwide.
Scantime Training – Providing training courses to clients worldwide, including Amazon UK, JLR, EDF Energy, Maersk Drilling, Toyota USA, and others, Scantime Training is the UK’s leading PLC training provider.
Tracoinsa Systems UK – Design, develop and deliver highly effective and efficient material handling solutions across a wide range of industries.
Finally, if any of your colleagues aren’t receiving this e-news, and you think it may be of interest to them, please ask them to sign up with Zoe.
Paul Jones
NAA CEO
