UK vehicle production held close to last year's levels in 2024, but the Society of Motor Manufacturers and Traders (SMMT) has warned that wavering commitment to electrification could put future investment at risk.

The trade body's latest figures show output stabilising after several turbulent years, with manufacturers continuing to ramp up electric vehicle production across multiple plants. However, SMMT chief executive Mike Hawes cautioned that the industry's competitiveness depends on sustained commitment to the transition.

The warning comes as UK car makers face pressure from the Zero Emission Vehicle (ZEV) mandate, which requires increasing proportions of EV sales each year. Several manufacturers have called for adjustments to the rules, arguing that consumer demand has not kept pace with regulatory targets.

Battery manufacturing capacity remains a critical concern. The UK still lacks the large-scale gigafactory capacity needed to support domestic EV production at volume, and uncertainty over future demand has delayed several planned investments.

Industry observers note that global automakers are allocating capital carefully, comparing the UK's policy environment with incentives available in the EU and United States. Decisions on next-generation vehicle programs will hinge on clarity over regulation and support.

What to watch next: the government's response to industry calls for ZEV mandate flexibility, and whether promised battery plant projects move to construction in 2025.