UK vehicle production falls again amid weak global demand

UK vehicle production declined sharply in February as weak global demand and ongoing industry pressures continued to weigh on output, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 68,061 vehicles rolled off production lines during the month, representing a -17.2% drop compared with the same period last year. Car production fell -10.7% to 65,885 units, while commercial vehicle (CV) output saw a steep decline of -74.0% to just 2,176 units, impacted in part by a major plant restructuring.

Exports, which account for the majority of UK automotive production, also weakened. Shipments of cars dropped -11.5% to 53,140 units, while CV exports plunged -65.1% to 1,306 units. Although the EU remained the largest market—taking 63.6% of car exports and 88.9% of CV shipments—demand outside Europe fell significantly, with exports to the US, China and Japan down -34.3%, -66.4% and -6.8% respectively.

Domestic demand also softened. Car production for the UK market declined -7.5% to 12,745 units, while CV output for British buyers fell -81.2% to 870 units. Electrified vehicle production—including battery electric, plug-in hybrid and hybrid models—slipped slightly by -2.8% to 26,629 units, though their share of overall output rose to 40.4%.

The downturn comes amid broader global uncertainty, including geopolitical tensions in the Middle East and concerns over proposed EU trade measures that could disadvantage UK-built vehicles.

“While the sector has made efforts to build resilience into its logistics and supply chains post-Covid, the conflict adds further strain.”

Hawes added that urgent action is needed to support the industry’s competitiveness: “Now more than ever we must focus on driving down energy costs, backing our suppliers, supporting our domestic market and securing free and fair trade with Europe.”