UK vehicle production has declined significantly, with output down 17.2% in February due to weakening global demand and mounting pressures on the automotive sector.
According to figures from the Society of Motor Manufacturers and Traders, only 68,061 vehicles were produced in February, comprising 65,885 cars and 2,176 commercial vehicles.
Notably, commercial vehicle production fell by 74% due to restructuring at a major manufacturing plant.
Exports, vital to Britain’s car industry, also decreased, with overall shipments down by 11.5%. The European Union remained the dominant market, accounting for nearly two-thirds of car exports.
However, demand from key global partners has sharply weakened. Sales to the United States plummeted by 34.3%, exports to China dropped 66.4%, and shipments to Japan also declined.
Domestic demand showed little resilience, with car production for UK buyers down 7.5%, while commercial vehicle output for the home market fell by more than 80%.
Production of electric, plug-in hybrid, and hybrid vehicles dipped slightly; however, these vehicles represented an increasing share—40.4% of total car output—indicating the industry’s ongoing transition towards greener alternatives.
This downturn occurs against a backdrop of global instability, including tensions in the Middle East and new regulatory concerns. Industry leaders have warned that proposed “Made in the EU” rules under the European Commission’s Industrial Accelerator Act could disadvantage UK manufacturers, jeopardising a trading relationship valued at £70 billion a year and potentially violating the post-Brexit trade agreement.
Manufacturers are now urging governments on both sides of the Channel to strengthen cooperation. They have cautioned that failing to do so could undermine investment, increase consumer costs, and put jobs at risk at a time when the sector is already facing intense global challenges.
Mike Hawes, SMMT Chief Executive, said: “Another decline for UK vehicle production and exports is extremely worrying, given these figures pre-date the crisis in the Middle East.
“While the sector has made efforts to build resilience into its logistics and supply chains post Covid, the conflict adds further strain.
“Now more than ever we must focus on our industrial competitiveness by driving down energy costs, backing our suppliers, supporting our domestic market and securing free and fair trade with Europe.”
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