British car and van production in the first half of 2024 reached its lowest point since 1953, excluding the COVID-19 shutdown. Car output fell 7.3%, while van production plummeted 45%, largely due to the closure of Vauxhall's Luton plant. Uncertainty surrounding US tariffs contributed to the decline, although a new US-UK tariff deal, effective June 30th, may improve confidence. The Society of Motor Manufacturers and Traders (SMMT) welcomed the government's reintroduction of electric vehicle (EV) grants but criticized the lack of clarity and industry consultation surrounding the new system.

Mike Hawes, SMMT chief executive, described the figures as "depressing" but expressed hope that the first half of 2024 represented the lowest point for the UK auto industry. While production of electrified vehicles rose 1.8%, reaching over 40% of total production, the SMMT doesn't expect a return to 2021 production levels (one million vehicles) by the end of the decade. The government's target of 1.3 million vehicles annually by 2035 is considered ambitious, requiring new entrants into the UK market. The new EV grants, up to £3,750 for EVs priced at or below £37,000, are complicated by unclear eligibility criteria based on carbon emissions during vehicle and battery production. This lack of clarity is causing confusion for both manufacturers and consumers.

The reintroduction of EV grants, totaling £650 million, will be awarded on a first-come, first-served basis. However, significant uncertainty remains regarding which models will qualify, creating challenges for the industry as September is a key period for new car registrations.