Commercial vehicle output in April fell by 10.9% to 2,378 units, its smallest decline for 13 months, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
Overall UK vehicle production fell by 1.2% in April to 58,513 units, according to the SMMT, with car output broadly stable for a second consecutive month, down just 0.7% to 56,135 units.
SMMT said the reduced decline in van output was partly down to the lessening effect of the closure of the Vauxhall / Stellantis van manufacturing plant in Luton in March last year.
The manufacturer transferred production to Ellesmere Port as part of its consolidation of UK electric van manufacturing and the closure has been widely linked to the sharp fall in UK van production figures since then.
In the year to date, UK factories have produced 266,601 vehicles, down 10.7% year on year. Car output is down 5.4% to 257,024 units, while CV production has declined 64.1% to 9,577 units.
SMMT said exports continued to drive production, accounting for 76.4% of all vehicle output in the month, with the EU the UK’s largest export market. An 8.2% decline in CV shipments was offset by 1.1% growth in cars produced for global markets, resulting in an overall 0.8% boost to outbound trade.
SMMT highlighted concerns that the the EU’s recently proposed ‘Made in Europe’ policy might restrict UK-produced vehicles, parts, batteries and raw materials from accessing their largest export market.
SMMT said that, given the “deep integration” of UK and EU automotive supply chains, the policy would undermine competitiveness, disrupt investment and weaken manufacturing capability on both sides of the Channel.
SMMT said: “Both sides already face the looming threat of tariffs when more onerous rules of origin requirements for electric and plug-in hybrid vehicles take effect in January 2027.
“Both issues, if not resolved, would put an €80bn-a-year trading relationship at risk, posing a major threat to the wider European automotive industry at a time of fierce global competition.”
Mike Hawes, SMMT chief executive, added: “April’s figures suggest production is stabilising, albeit at reduced levels, when the ambition remains to grow the sector.
“UK manufacturers still face high costs, notably in energy, and uncertainty in the trading relationship with key trading markets.
“More serious is the UK sector’s carve out from the EU’s ‘Made in Europe’ proposals which, coupled with tougher rules of origin requirements from next year, risk undermining the industry on both sides.
“The forthcoming EU-UK Summit must address these issues and deliver solutions that safeguard our mutual competitiveness and growth.”