The production of British car and van in the first half of this year has reached its lowest level since 1953, leaving the shutdown of the industry during Kovid.
Car production fell 7.3% in June in six months Closing the luteon van plant of vouhall Society of motor manufacturers and traders (SMMT) show data from the society’s society helped produce van below 45%.
Uncertainty on tariffs in the US – the second largest market in the UK industry – some firms slow down or shut down production in the first half of this year.
The SMMT stated that the US-UK tariff deal that has been implemented since then could help in confidence, while the government said its electric vehicle (EV) would “boost” the grant industry.
SMMT welcomed EV grants, but said that the new system lacked clarity and was introduced without consulting the industry.
SMMT Chief Executive Officer Mike Hes said that the half -year production figures were “disappointing”, but he hoped that the first half of this year marked “Nadir” for the UK auto industry.
In May, a deal with the US came into effect on 30 June to reduce tariffs from 27.5% to 10%, in which SMMT recorded a small increase in vehicle production in June.
However, SMMT is not expected to return to 2021 production levels of a million vehicles by the end of the decade.
Mr. Hayes said that by 2035, the government’s target of 1.3 million vehicles per year was “quite ambition from where we are from where”
Production of electrified vehicles increased by 1.8% with batteries, hybrids and plug-in hybrid vehicles, accounting for a record of more than two of the five vehicles produced.
Last week, the government confirmed that it would resume a grant up to £ 3,750 on some EVs, which cost less than £ 37,000.
While SMMT welcomed the return of the encouragement ended in 2022, there is a widespread confusion about which vehicles will qualify for exemption.
The level of eligibility and exemption will be determined by the amount of carbon emitted in the production of the vehicle and the production of its battery. They will be introduced only to manufacturers who have not yet defined the government, which verify science-based goals with threshold.
It is expected that Chinese and Korean vehicles will not meet the criteria, but are very rare.
“The difficulty is, we do not know. Nobody knows, but no one, no government, really still knows, which models and which brands will be qualified,” Mr. Hayes said.
“I think the industry is still trying to get clarity behind its application. Right now your dealer cannot tell you that the model you are considering is eligible.”
He said that the new car registration is the second largest month of September, requiring clarity.
A spokesman for the Transport Department said that he hoped that “dozens of models would be eligible for electric car grants, which will give sufficient boost for the industry and save the drivers thousands of pounds”.
“We want the discounts to be available to drivers as soon as possible, and we are attaching to the vehicle manufacturers on a large scale and have published guidance to help them easily apply,” he said.
The £ 650 m grant money will be honored on the first come first served basis.
