Published by Global Banking & Finance Review®
Posted on February 27, 2025
2 min readLast updated: January 25, 2026
Add as preferred source on GoogleUK car production dropped nearly 18% in January 2025 due to global market challenges. Electric vehicle output rose, but industry faces rising costs and competition.
(Reuters) - Britain's vehicle output was off to a poor start in 2025, with January production down nearly 18% year-on-year, due to weakness in key markets such as the European Union, China and the UK, industry data showed on Thursday.
A total of 78,012 units rolled off factory lines in the first month of 2025, a decline from a strong January last year, the Society of Motor Manufacturers and Traders (SMMT) said.
"UK vehicle producers face a perfect storm of global trade uncertainty, challenging manufacturing conditions and a market transition which is proving tougher than expected," Mike Hawes, SMMT chief executive said.
Global automakers are struggling with rising costs, sluggish demand and stiff competition from Chinese rivals, as well as stringent carbon regulation and potential tariffs under Donald Trump's second U.S. presidency.
UK's luxury car maker Aston Martin cut 5% of its workforce on Wednesday and delayed the launch of its first battery electric vehicle after its losses and debt rose sharply.
Hawes reiterated the need for urgent government aid to help the UK automotive sector and urged the industry to be kept "at the heart of its forthcoming industrial and trade strategies".
UK production of battery electric, plug-in hybrid and hybrid vehicles rose 1.5% to 30,028 units, accounting for 42.2% of all cars made in January, the highest monthly performance since December 2022.
(Reporting by Yamini Kalia in Bengaluru; Editing by Vijay Kishore)
UK vehicle production in January 2025 dropped nearly 18% year-on-year.
UK vehicle producers are facing global trade uncertainty, challenging manufacturing conditions, and a tougher-than-expected market transition.
Aston Martin cut 5% of its workforce and delayed the launch of its first battery electric vehicle due to rising losses and debt.
Production of battery electric, plug-in hybrid, and hybrid vehicles rose 1.5% to 30,028 units, accounting for 42.2% of all cars made in January.
SMMT chief executive Mike Hawes reiterated the need for urgent government aid to support the UK automotive sector.
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