In April 2025, the UK’s automotive industry experienced a significant downturn amid export slump, marking its weakest start to the year since 2009. According to the Society of Motor Manufacturers and Traders (SMMT), total car and commercial vehicle production fell by 15.8% year-on-year, totaling 59,203 units. This figure represents the lowest April output since 1952, excluding the pandemic-affected 2020.
The decline was primarily driven by a sharp drop in exports. Shipments to the European Union and the United States, the UK’s two largest automotive markets, decreased by 19.1% and 2.7% respectively. The timing of Easter also contributed to reduced production days in April, further impacting output.
Domestically, car sales have fallen in three of the first four months of 2025 amid export slump. Factors such as tax changes, including the extension of the Expensive Car Supplement to electric vehicles from April 1, have influenced consumer behavior, leading to a 10.4% drop in new car registrations in April compared to the previous year.
Mike Hawes, Chief Executive of the SMMT, emphasized the need for immediate action to bolster domestic demand and enhance international competitiveness. He stated, “With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness”.
In response to the challenges, the UK government has secured trade agreements aimed at supporting the automotive sector. Notably, a bilateral trade agreement with the U.S. includes reductions in tariffs on British car exports. Additionally, a deal with India has been established, cutting tariffs and setting quotas for auto imports.
Despite the overall decline, the production of electrified vehicles—comprising battery electric, plug-in hybrid, and hybrid models—saw a modest increase. These vehicles accounted for 40.5% of total production in April, up from 37.7% the previous year. However, the growth was constrained by ongoing factory retooling efforts to accommodate new models and technologies.
The SMMT warns that without a robust industrial strategy, future investments in the UK’s automotive sector may be jeopardized. The organization calls for policies that support the transition to electric vehicles, enhance global competitiveness, and stimulate domestic demand.
As the industry navigates these challenges, the focus remains on adapting to changing market dynamics, technological advancements, and evolving consumer preferences. The coming months will be critical in determining the trajectory of the UK’s automotive manufacturing sector.
