UK car production rises for the first time in a year – SMMT
UK car production and commercial vehicle production rose by 17.1% to 79,018 units last month, according to the Society of Motor Manufacturers and Traders (SMMT).
Car manufacturing grew for the first time in 12 months, driven by 30.6% increase in exports, while production for the domestic market was down by 6.1%.
Meanwhile, production of electric vehicles was up by 38.5% to 31,661 units, accounting for 45% of all UK car output.
CV production also rose, up by 8.2% to 8,700 units, in comparison with a weak March 2024 when volumes were constrained by both Easter timing, and a softening of output following 2023’s post-Covid pent-up demand. As in previous months, CV growth was driven by domestic demand, which rose by 77.9% to 5,218 units. Conversely, exports fell by -31.8% to comprise just 40.0% of output. The EU remains the sector’s largest market by far, accounting for 94.2% of exports in the month.
As a result, overall UK car production for the first quarter of 2025 was down by 3.2% while CV output was down a more significant 27.1%.
Given the figures reflect the level of demand ahead of the announcements of new US tariffs, manufacturers face considerable uncertainty heading into quarter two as US demand likely weakens with knock-on effects on other markets and the supply chains.
Mike Hawes, SMMT chief executive: “A March uplift to manufacturing is overdue good news, although the performance was boosted by a comparatively weaker month last year, when holiday timings and product changeovers combined to reduce output. With the last quarter showing demand for British-built cars rising overseas, navigating the new era of trade uncertainty is now the major challenge.
“Government has rightly recognised automotive manufacturing’s critical role in Britain’s export economy and must now show urgency and creativity to deliver a deal that supports our competitiveness, spurs domestic demand for the latest cleanest vehicles, and helps factory lines flourish.”
