Auto manufacturing in the U.K. has slumped to its lowest for over 70 years in a worrying development for the country’s economy, and an industry that has taken a series of knocks in recent years.
Data for the month of April, published by the U.K. Society for Motor Manufacturers and Traders on Friday, indicated that 59,203 vehicles were made in the country. The figure was the lowest April output for more than 70 years, if 2020 is excluded. That year government restrictions during the Covid-19 pandemic effectively shuttered production.
The April figure was 15.8% lower than the same month last year, and a quarter lower than March, when numbers were likely boosted by manufacturers scrambling to export more cars to the U.S. ahead of President Donald Trump’s then imminent move on international trade tariffs.
Car production for specifically for exports subsequently dropped by 10.1% in April due to falls in demand from the U.K.’s biggest export markets – the U.S. and E.U.
The lowest April output before SMMT’s latest data release, if pandemic data is excluded, was back in 1952 when 53,517 vehicles were produced. The group also said the total number of vehicles manufactured in the U.K. for the first four months of this year was the lowest on its record since 2009.
The SMMT said a number of factors were behind the production decline including tariffs imposed by U.S. and the timing of the Easter holiday break.
However, a U.K and Europe-wide shift in the industry as it grapples with ideas to manage a phased move from petrol cars to electric vehicles was also to blame for the “temporarily reduced output”, it added.
It is a problem that is not unique to the U.K., with auto manufacturers in other major European hubs like France, Germany and Italy grappling with similar strategic concerns.
“The U.K.’s new trade deals with E.U., U.S. and India provide opportunities for future growth, but urgent action is needed to bolster British manufacturing competitiveness,” the SMMT warned.
Recent Trends Have Been Troubling
In 2024, Stellantis – the maker of Vauxhall, Citroen and Peugeot brands – warned it may have to halt production in the U.K. due to uncertainty over the British government’s approach to EVs. In recent years, the country has also seen the likes of Ford and Honda shut down their auto manufacturing plants.
Responding to the data, Mike Hawes, Chief Executive of SMMT, noted: “With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness.
“Government has recognised automotive manufacturing’s critical role in driving the U.K. economy, having successfully negotiated improved trading conditions for the sector with the U.S., E.U. and India in the space of a month.”
But to take advantage of these trading opportunities, U.K. automakers must secure additional investment which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy, Hawes added.
“Get this right and the jobs, economic growth and decarbonisation [in auto manufacturing] will flow across the U.K.”
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