Auto gloom blamed on

‘soft market'

SMMT car manufacturing, 2025, February
SMMT total vehicle production, 2025, February
SMMT vehicle production, 2025, February

UK car and commercial vehicle production fell by 11.6 per cent in February, to 82,178 units, according to the latest figures released today by the Society of Motor Manufacturers and Traders.

Manufacturers turned out 10,787 fewer cars, vans, trucks, taxis, buses and coaches than in February the year before, with multiple factors at play, notably soft markets at home and overseas, model changeovers and plant restructuring.

In the twelfthconsecutive month of decline for car manufacturing, the lion's share of output was for export, with more than eight-in-10 units shipped abroad in the month and volumes up 1.3 per cent to 60,034 units.

Carproduction for the UK market, meanwhile, fell 33.3 per cent to 13,780 units.

The EU remained the largest market for UK car exports, taking 53.5 per cent, followed by the US at 19.7 per cent and China at 6.3 per cent.

In line with recent trends, while shipments to the EU and China fell 9.6 per cent and -10.9 per cent respectively, those to the US rose 34.6 per cent. Turkey and Japan rounded off the top five car export markets, taking a combined 6.3 per cent share, with shipments up 75.5per cent and 119.2 per cent respectively.

UK production of battery electric, plug-in hybrid and hybrid cars fell 5.6 per cent to 27,398 units in the month, but still boosted their share marginally to 37.1 per cent, from 36.3 per cent last February. In the year-to-date these electrified cars have taken a 39.6 per cent share of production, up from 36.0 per cent a year ago, with a more modest 2.1 per cent fall in volumes compared with overall output down 11.0 per cent.

CV output, meanwhile, fell 35.9 per cent to 8,364 units, driven primarily by less van production andfollowing last year's February performance, which was the best since 2008 when output almost doubled.

Volumes were driven by domestic demand, accounting for 55.2 per cent of output with volumes up by more than half to 4,621 units. CV exports, however, fell 62.7 per cent to 3,743 units, and with 93.8 per cent heading to the EU, reflecting a drop of 5,956 units shipped to the bloc.

The overall performance reflects the challenges the sector faces globally.

Measures are needed urgently to bolster the UK's competitiveness and drive consumer demand. The Spring Statement by the Chancellor, which offered no support for the industry or consumers, represented a missed opportunity and will delay further the sector's ability to deliver growth for the UK economy.

The forthcoming Industrial and Trade strategies must, therefore, be fast-tracked to signal the UK is open for business, and the £2 billion promised by government via the Automotive Transformation Fund rolled out immediately, said the SMMT.

Fundamental to growth will be a strong new vehicle market, one that is increasingly electrified. Government must support all elements of road transport in this transition by cancelling the VED Expensive Car Supplement for EVs, cutting VAT on public charging and new BEV sales, extending the Plug-in Truck Grant and introducing mandatory targets for infrastructure rollout. This would back the industry's billions of pounds of investment in new factories, models and discounts, and embolden consumers and operators to make the switch.

Mike Hawes, SMMT chief executive, said:"These are worrying times for UK vehicle makers with car production falling for 12 months in a row, rising trade tensions and weak demand.

"The market transition is not keeping pace with ambition and, while the industry can deliver growth - and green growth at that - it needs policies to deliver that reality.

"It was disappointing, therefore, to hear a Spring Statement that did nothing to alleviate the pressure on manufacturers and, moreover, confirms the introduction next month of additional fiscal measures which will actually dissuade consumers from investing. Without substantive regulatory easements our manufacturing viability remains at risk and the UK's transition to zero emission mobility under threat."

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