UK car output dips as Trump auto tariffs loom
Production of cars and commercial vehicles saw an alarming 11.6 per cent decline in February, according to new data from the Society of Motor Manufacturers and Traders (SMMT).
Just 82,178 vehicles were produced – a drop of 10,787 from February 2024 – in the 12th consecutive month of falling auto manufacturing output.
There was a particular decline in manufacturing for the home market, with a 22.3 per cent plunge in vehicles manufactured to be sold in the UK market – down to 18,401.
The data release comes at a tense moment for the global automotive industry, the morning after President Trump announced 25 per cent tariffs on all automotive imports into the US.
In 2023, 18.4 per cent of UK automotive exports went to the US, accounting for £6.4bn – and the new levies are particularly worrying given that exported vehicles are experiencing a less pronounced decline.
In February, vehicles intended for export dipped 8 per cent.
The trade body called for more active measures from the government to boost the UK EV market – from pulling the plug on the VED Expensive Car Supplement for EVs to cutting VAT on public charging stations.
Mike Hawes, SMMT’s chief executive, said that it was “disappointing” that the Spring Statement did not include specific measures to ease the pressures on auto manufacturers and promote green growth, calling on the government to introduce “policies to deliver that reality.”
Electrified vehicles have edged up in their share of auto production, from 39.6 per cent up from 36 per cent in 2024.
Hawes added: “These are worrying times for UK vehicle makers with car production falling for 12 months in a row, rising trade tensions and weak demand.”
“Without substantive regulatory easements our manufacturing viability remains at risk and the UK’s transition to zero emission mobility under threat.”
Hawes described the Trump auto tariffs as “not surprising but, nevertheless, disappointing.”
“Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefiting consumers and creating jobs and growth across the Atlantic.”