UK car output dips as Trump auto tariffs loom

cityam
03-27
Just 82,178 vehicles were produced in February.

Production of cars and commercial vehicles saw an alarming 11.6 per cent decline in February, according to new data from the Society of Motor Manufacturers and Traders (SMMT). 

Just 82,178 vehicles were produced – a drop of 10,787 from February 2024 – in the 12th consecutive month of falling auto manufacturing output. 

There was a particular decline in manufacturing for the home market, with a 22.3 per cent plunge in vehicles manufactured to be sold in the UK market – down to 18,401.

The data release comes at a tense moment for the global automotive industry, the morning after President Trump announced 25 per cent tariffs on all automotive imports into the US. 

In 2023, 18.4 per cent of UK automotive exports went to the US, accounting for £6.4bn – and the new levies are particularly worrying given that exported vehicles are experiencing a less pronounced decline. 

In February, vehicles intended for export dipped 8 per cent. 

The trade body called for more active measures from the government to boost the UK EV market – from pulling the plug on the VED Expensive Car Supplement for EVs to cutting VAT on public charging stations. 

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