UK Vehicle Production Hits Highest Level Since 2019
The UK’s vehicle production rose by the highest amount since 2019 in May, according to the latest figures.
It was the fourth consecutive month of growth and with overseas orders as well as domestic both hitting double figures of growth, it’s a good sign for the future.
May 2023 saw a 26.9% uplift year on year, with 79,046 vehicles leaving the production lines.
It follows news of the commercial vehicle sector hitting a strong vein of recovery in the last 12 months as well, with October 2022 seeing a record rise before a sustained period 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 Is The Impact On Fleets?
The vehicle production figures are good news for the UK’s automotive sector after a few years of significant challenges.
Between the pandemic, Brexit, and the global semiconductor shortage, it’s been a tough spell for manufacturers.
It’s a step in the right direction for the UK vehicle market and there are signs that the market is finally getting back on track after the disruption in recent years.
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.
What Is The Situation For Fleets?
September is traditionally one of the biggest months for new vehicle purchases and registration, so the fact that vehicle production is growing can only be a good thing as we move into a busy period for purchasing.
Availability has been increasing for some time and there is optimism in the automotive sector that between new EV models and hybrid and petrol vehicles, there’s plenty on offer for fleets and private registrations too.
And on that topic, one of the pressing questions that many fleets are exploring is when the right time to make the switch to electric vehicles is.
I know that many fleets are planning a phased switch where older vehicles are replaced with EVs until the entire fleet is, which is a sustainable way to do it…
But there’s also plenty of opportunities through various scrappage schemes for any vehicles that are not compliant with clean air zones and low emission zones.
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 are considering making the switch to electric? Or have you already made or begun the switch? Let us know in the comments below.