The UK automotive industry experienced a significant decline in vehicle production in April 2025, with only 59,203 vehicles manufactured—marking the lowest output for the month in over 70 years, excluding the lockdown period of 2020. The drop has been attributed to ongoing tariffs imposed by the United States and fewer working days due to the Easter holiday.
Major Contributing Factors
The Society of Motor Manufacturers and Traders (SMMT) reported that this April’s production figures were 16% lower than the same month last year and represented a 25% decline compared to March. The reduction in output has been influenced in part by preparations to export vehicles to the US ahead of the implementation of President Trump’s 25% tariffs on steel, aluminum, and cars.
Additionally, Jaguar Land Rover (JLR), a prominent British car manufacturer, faces significant costs related to these tariffs. The company has stated that the 27.5% tariffs imposed on its exports to the US are a substantial financial burden, as it incurs both export and import tariffs when sending vehicles across the Atlantic. JLR has expressed frustration over the slow implementation of a new agreement that would reduce these tariffs to 10% for a quota of 100,000 vehicles.
Declining Export Demand
The SMMT noted that production intended for export fell by 10.1%, primarily due to decreased demand from the UK’s largest markets, the US and EU. Overall, the total vehicle output for the first four months of 2025 was the lowest recorded since 2009. The lowest April output prior to this year occurred in 1952, when just 53,517 vehicles were produced.
Mixed Market Performance
While exports have taken a significant hit, Nathan Coe, CEO of online car retailer Autotrader, indicated that the domestic market remains relatively strong. “More new cars and used cars have sold in the UK market,” he said, though he acknowledged that manufacturing has suffered due to export pressures. Coe emphasized that despite these challenges, the UK market might be more appealing for foreign manufacturers as selling cars in the US becomes increasingly expensive.
April’s output for the domestic market declined by 3.3% compared to the previous year, aligning with the broader downward trend seen in various countries, including Germany, Italy, France, and Japan. According to Professor Peter Wells, director of the Centre for Automotive Industry Research at Cardiff University, the UK faces unique pressures that might impact its automotive sector more acutely than in other regions, such as fewer trade barriers against Chinese imports relative to the EU and US.
Industry Perspectives and Future Outlook
Concerns surrounding the automotive industry extend beyond production figures. Recent changes in UK government policy regarding electric vehicle (EV) manufacturing have complicated planning for carmakers. In April, the UK announced a relaxation of sales targets for EVs and reduced penalties for non-compliance with emissions standards. This shift prompted fears among manufacturers about the stability and clarity of future policies.
Over the years, the UK has witnessed significant plant closures by producers like Honda and Ford, further underscoring the pressing need for coherent policy in the sector. Stellantis, which produces Vauxhall, Citroen, and Peugeot vehicles, previously warned that production in the UK might cease due to uncertainties regarding the government’s approach to EVs.
The need for stability and clarity in the automotive industry has never been more critical, according to Professor Wells, who described the current environment as volatile. The interconnected challenges of trade tariffs, shifting consumer preferences towards electric vehicles, and regulatory changes continue to create uncertainty for manufacturers operating in the UK market, making it imperative for policymakers to deliver consistent and supportive frameworks for the industry’s future.
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