UK Car Manufacturing Falls to Lowest April Output Since 1952

US tariffs, EV transition, and fewer working days drive steep production drop amid wider global slowdown

UK Vehicle Production Slumps to 70-Year Low

Car manufacturing in the UK fell to its lowest April output in over seven decades, excluding the 2020 pandemic year, as US trade tariffs, the timing of Easter, and the transition to electric vehicles (EVs) all weighed on output.

According to the Society of Motor Manufacturers and Traders (SMMT), just 59,203 vehicles were produced in April—16% down on the same month last year, and 25% lower than March.

This marks the lowest April figure since 1952, apart from 2020 when COVID-19 brought production to a halt.

US Tariffs and Easter Timing Hit Export Volumes

The SMMT attributed the sharp decline partly to the timing of Easter, which fell in April this year, reducing the number of working days. However, broader challenges remain:

• US tariffs of up to 27.5% on UK car exports came into effect after March, causing manufacturers to front-load shipments
• Although a US court recently blocked many of President Trump’s tariffs, those on steel, aluminium and cars remain in place
• A new UK-US trade agreement, which lowers car tariffs to 10% for up to 100,000 vehicles, has yet to come into effect, frustrating manufacturers like Jaguar Land Rover (JLR)

JLR reported that it faces export and import taxes on vehicles sent between its UK and US operations, stating it is costing the firm "a huge amount of money".

Domestic Market More Resilient Than Exports

Exports, which account for the majority of UK vehicle production, took the biggest hit:

• Export production fell by 10.1% in April
• UK market output declined by just 3.3%

Nathan Coe, CEO of AutoTrader, said the domestic market remains relatively strong:

“More new and used cars are being sold in the UK, but export disruptions are dragging down overall manufacturing numbers.”

Policy Uncertainty Clouds EV Transition

The broader shift from petrol to electric vehicles is also disrupting the industry. In April, the UK government announced a relaxation of EV sales targets and fines for non-compliant vehicles, creating confusion for manufacturers.

Prof Peter Wells, director of the Centre for Automotive Industry Research at Cardiff University, said policy volatility is undermining business confidence:

“Carmakers need stability and clarity—whether on tariffs, electrification, or trade. Right now, the UK lacks both.”

Prof Wells also noted the UK is more exposed to Chinese car imports than the US or EU, which have tighter trade restrictions.

Global Industry Also Under Pressure

The UK is not alone in facing production challenges. Germany, France, Italy, and Japan are all seeing declines in vehicle output amid weak global demand, rising costs, and supply chain disruptions.

However, the UK’s exposure to shifting EV policies and softer trade barriers may be exacerbating the situation locally.

Key Takeaways

• UK car production hit a 70-year low in April (excluding 2020)
• US tariffs and EV transition blamed for sharp output decline
• Export volumes fell 10.1%, domestic production down 3.3%
• Jaguar Land Rover faces steep costs under new US import duties
• Policy uncertainty and trade exposure increase UK vulnerability
• SMMT calls for stability to support future growth

As the UK automotive industry faces both global headwinds and domestic policy shifts, stability and clear direction will be key to reversing the decline.

Sources: (BBC.co.uk, ChatGPT)