8:01 am, April 25, 2025
UK car manufacturing has grown for the first time in 12 months, placing even more pressure on the government to secure a favourable trade deal with the US.
Combined car and commercial vehicle production rose by 17.1% to 79,018 units in March, according to new data published by the Society of Motor Manufacturers and Traders (SMMT).
That growth figure is slightly skewed by March 2024’s numbers which experienced significant model changeovers and an early Easter break, reducing working days.
Nevertheless, robust export demand drove the rise in car manufacturing. The number of exports rose by 30.6% while production for the UK market fell by 6.1%.
The number of electrified cars to roll out of UK factories rose by 38.5% – more than twice the rate of total production – to 31,661 units, to account for almost half of all UK car output (45.0%).
The EU continued to be the largest destination for UK car exports, accounting for 57.2% of all shipments.
Ahead of the introduction of new tariffs, the US remained the second largest export market, accounting for 15.0% of exports, followed by China (8.5%), Turkey (2.7%) and Japan (2.6%).
Exports to all top five markets rose for the month, with the EU up by 28.9%, the US 36.1%, China 86.0%, Turkey 272.1% and Japan 91.8%.
CV production also rose, up by 8.2% to 8,700 units – again against a weaker March 2024 due to an earlier Easter, but also lower demand for CVs 12 months ago.
March’s strong performance wasn’t enough to boost Q1’s overall figures, however. Car production is down by 3.2% in the first quarter, CV output is down by 27.1%, and exports are down by 50.3%.
The SMMT warned that carmakers face ‘considerable uncertainty’ in Q2 thanks to the introduction of US tariffs.
It said: ‘Trade discussions must continue at pace to reach a deal that supports jobs, demand and growth on both sides of the Atlantic.
‘Increased protectionism and retaliatory tariffs being levied in key markets mean a rapid response from government is needed, given the immediate challenges facing the industry’s exports.’
Commenting on the figures, SMMT chief Mike Hawes said: ‘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.’
