Published by Global Banking & Finance Review®
Posted on March 27, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleUK vehicle output fell 12% in February due to economic challenges. Domestic production dropped 33%, while exports remain strong, highlighting industry struggles.
(Reuters) - Britain's vehicle output, including those of electric and hybrid automobiles, fell in February, industry data showed on Thursday, underscoring the persistent challenges faced by the auto sector amid escalating global economic uncertainties.
Total car and commercial vehicle production fell nearly 12% from a year ago to 82,178 units last month, according to data from the Society of Motor Manufacturers and Traders (SMMT), while battery electric, plug-in hybrid and hybrid car output dipped 5.6%.
Car production in Britain recorded its twelfth consecutive month of declines, data showed, as automakers worldwide struggle with rising costs, sluggish demand and stiff competition from Chinese rivals, as well as stringent carbon regulation.
Bleak visibility over potential U.S. tariffs on automobiles under Donald Trump's second presidency is also weighing as Trump's America-first rhetoric has ratcheted up trade tensions.
The U.S. is the second-biggest importer of British-made cars after the European Union, with nearly a 20% share. In February, more than eight out of ten cars produced in Britain were exported, SMMT data showed.
Meanwhile, car production for the domestic market slumped roughly 33% to 13,780 units on a year-on-year basis.
Britons are putting off major purchases as they grapple with rising inflation, a slow pace of interest rate cuts and wider economic woes that the government is racing to address.
On Wednesday, British finance minister Rachel Reeves cut the government's plans for spending increases to get back on track towards her fiscal targets, but risks in the world economy could raise the prospect of tax hikes later this year.
Mike Hawes, SMMT chief executive, emphasised the need for supportive policies, noting that Reeves' budget update offered no relief for the industry or consumers.
"Without substantive regulatory easements our manufacturing viability remains at risk and the UK's transition to zero emission mobility under threat," Hawes said in a statement.
(Reporting by Aby Jose Koilparambil and Pushkala Aripaka in Bengaluru; Editing by Alan Barona)
Total car and commercial vehicle production fell nearly 12% from a year ago to 82,178 units last month.
Car production in Britain recorded its twelfth consecutive month of declines.
Automakers are struggling with rising costs, sluggish demand, and stiff competition from Chinese rivals.
Finance minister Rachel Reeves cut the government's plans for spending increases to get back on track towards her fiscal targets.
The U.S. is the second-biggest importer of British-made cars after the European Union, with nearly a 20% share.
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