UK's car output drops in April, sees worst start to year since 2009

(Reuters) -Britain's vehicle output dropped sharply in April, marking the worst start to the year since 2009, due to weak export demand and the timing of Easter, industry data showed on Thursday.

The drop comes as European carmakers strive to cut costs amid stiff competition, U.S. tariffs on auto imports, and a slowing global economy, with the outlook uncertain despite eased U.S.-China trade tensions.

Total car and commercial vehicle production fell 15.8% from a year ago to 59,203 units in April, the lowest for that month since 1952, excluding the COVID-19 lockdown-hit 2020, according to data from the Society of Motor Manufacturers and Traders.

UK car sales have fallen in three of the four months in 2025 so far.

The April decline was driven by several factors, including the later timing of Easter, which reduced the number of production days in the month and contributed to production in March.

Weak demand for cars in key export markets weighed on volumes, SMMT said. Shipments to the UK’s two largest global markets, the EU and U.S., fell by 19.1% and 2.7%, respectively.

"With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness," SMMT Chief Mike Hawes said in a statement.

Britain has secured several trade accords since U.S. President Donald Trump announced sweeping tariffs, unleashing a trade war.

Earlier this month, Trump and British Prime Minister Keir Starmer announced a limited bilateral trade agreement that includes cuts to U.S. tariffs on British car exports.

In May, Britain also struck a deal with India cutting tariffs on goods while setting quotas for auto imports and repositioned itself closer to the European Union on defence, energy and agriculture.

The SMMT said recent trade deals with the U.S., EU and India offer new opportunities, but warned that investment depends on a robust industrial strategy.

(Reporting by Anandita Mehrotra in Bengaluru; Editing by Mrigank Dhaniwala)