Commercial Vehicle Production hits 10-year high
The UK’s commercial vehicle sector experienced the highest level of production in more than a decade in September.
Production grew by 53.6% with almost 12,000 vans, HGVs, lorries, trucks, buses, coaches, and taxis being produced and hitting the market.
The figures are a significant boost at a time when much is being said around vehicle production in the UK with commercial vehicle production now on a run of 9 consecutive months of growth.
Demand for UK commercial vehicles continues to increase, which is a positive sign for the fleet sector as availability improves, and it’s also a positive sign for the export market.
What Does It Mean For Fleets?
The commercial vehicle production figures are the latest in a series of good news stories for the sector after a tough couple of years with the impact of the pandemic, Brexit, and the global semiconductor shortage causing issues.
New vehicle registrations rose in August but there is still some cause for concern with many fleets not being able to procure the requisite number of vehicles. That’s most likely a knock-on effect after many fleets had to extend their vehicle replacement cycles due to increased lead times on new vehicles.
It’s a step in the right direction for the UK vehicle market and while the disruption of the chip shortage will take some time to recover from, there are positive signs that the market is bouncing back.
Business registrations with fewer than 25 vehicles were the sector with the highest level of growth in August, rising 26.6%.
A significant portion of the new vehicles registered were battery electric vehicles as drivers and fleets turn to electric vehicles ahead of the phasing out of internal combustion engine vehicles in 2030.
It’s worth noting that despite growth in August, the year-on-year comparisons show that the overall registrations were still the lowest since 2013, excluding 2021 which saw record lows.
It’s a similar story across the board when it comes to vehicle manufacturing, which is still playing catch-up to the shortages and supply chain issues over the last couple of years.
What Is The Situation For Fleets?
September is traditionally one of the biggest months for new vehicle purchases and registration, so the fact that commercial vehicle production has hit its highest level in more than 10 years suggests there are reasons to be cheerful.
There are still concerns over availability but as time goes on, production is predicted to catch up with demand.
The main question for many fleets is still over when the right time to make the switch to electric is. Given the 2030 deadline for the production of internal combustion engine vehicles, decisions need to be made on when vehicle replacements will be made, when the right time is to switch, and what impact it will have on the fleet.
Have you recently purchased new vehicles for your fleet? Or have you found supply chain issues? Considering making the switch to electric? Let us know in the comments below.