Vehicle production in the UK continued to stabilise in April, but the country’s automotive trade body remains concerned about new EU trade protectionism rules.
New figures, published by the Society of Motor Manufacturers and Traders (SMMT) today Thursday (May 28), show that UK vehicle production fell by 1.2% last month, to 58,513 units.
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Car output was broadly stable for a second consecutive month, down by just 0.7% to 56,135 units compared to April 2025, while commercial vehicle (CV) output fell 10.9% to 2,378 units – its smallest decline for 13 months as the closure of Vauxhall’s plant in Luton last year, no longer impacts year-on-year figures.
The overall performance, however, still reflects wider model changeovers and challenges in some key global markets, says the SMMT.
Exports continued to drive production, accounting for 76.4% of all vehicle output in the month. An 8.2% decline in CV shipments was offset by 1.1% growth in cars produced for global markets, resulting in an overall 0.8% boost to outbound trade.
The EU remained the top global destination for cars, taking more than half (53.2%) of exports, with shipments up 6.9% to 23,103 units.
Exports to the US also rose, up 6.8% to 7,558 units, but deliveries to China fell by 44.4% to 2,081 units.
In the year-to-date, UK factories have produced 266,601 vehicles, down 10.7% year on year. Car output is down 5.4% to 257,024 units, while CV production has declined 64.1% to 9,577 units.
The SMMT is urging action to ensure the EU’s recently proposed ‘Made in Europe’ policy does not restrict UK-produced vehicles, parts, batteries and raw materials from accessing their largest export market.
Given the deep integration of UK and EU automotive supply chains, such a move would damage competitiveness, disrupt investment and weaken manufacturing capability on both sides of the Channel, according to the SMMT.
Both sides, it says, already face the looming threat of tariffs when more onerous rules of origin requirements for electric and plug-in hybrid vehicles take effect in January 2027.
Both issues, if not resolved, would put an €80 billion-a-year trading relationship at risk, posing a major threat to the wider European automotive industry at a time of fierce global competition, it added.
Mike Hawes, SMMT chief executive, said: “April’s figures suggest production is stabilising, albeit at reduced levels, when the ambition remains to grow the sector.
“UK manufacturers still face high costs, notably in energy, and uncertainty in the trading relationship with key trading markets.
“More serious is the UK sector’s carve out from the EU’s ‘Made in Europe’ proposals which, coupled with tougher rules of origin requirements from next year, risk undermining the industry on both sides.
“The forthcoming EU-UK Summit must address these issues and deliver solutions that safeguard our mutual competitiveness and growth.”
