News

UK vehicle production falls again as industry warns over EU ‘Made in Europe’ threat

  • Total car and CV production fell by 1.2% in April
  • Year-to-date production is 10.7% down on same period last year
  • SMMT calls on government to protect industry over EU policy

Time 7:59 am, May 28, 2026

UK car and commercial vehicle production fell again last month latest figures show, as the sector’s trade body calls on the government to ensure British-built vehicles aren’t restricted under the EU’s new ‘Made in Europe’ policy.

The number of cars and commercial vehicles to roll off UK production lines fell by 1.2% in April to 58,513 units, according to new data from the Society of Motor Manufacturers and Traders (SMMT).

Car production was ‘broadly stable for a second consecutive month’, down 0.7% to 56,135 units, while commercial vehicle volumes fell by 10.9% to 2,378 units. This was the smallest decline in CV production for 13 months as the effects of Vauxhall’s Luton factory closure ceased.

Exports were the highlight with shipments rising by 1.1% for cars, although CVs fell by 8.2%.

So far this year, UK factories have built 266,601 vehicles, down 10.7% year on year.

Car output is down 5.4% to 257,024 units, while CV production has declined 64.1% to 9,577 units.

The figures come as manufacturing sector calls for action to ensure the EU’s proposed ‘Made in Europe’ policy does not prevent UK-built vehicles, batteries, parts and raw materials from accessing the EU, which is the UK’s largest export market.

Any restrictions would hurt competitiveness, disrupt investment and weaken manufacturing on both sides of the Channel, said the SMMT.

SMMT chief executive Mike Hawes said: ‘April’s figures suggest production is stabilising, albeit at reduced levels, when the ambition remains to grow the sector. UK manufacturers still face high costs, notably in energy, and uncertainty in the trading relationship with key trading markets.’

He added: ‘More serious is the UK sector’s carve out from the EU’s “Made in Europe” proposals which, coupled with tougher rules of origin requirements from next year, risk undermining the industry on both sides.

‘The forthcoming EU-UK Summit must address these issues and deliver solutions that safeguard our mutual competitiveness and growth.’

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large from 2014 and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer. In October 2021 he became Car Dealer's associate editor.



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