UK car and commercial vehicle production rose by 17.1% to 79,018 units in March, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).
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Output of cars, vans, trucks, taxis, buses and coaches increased in comparison with a weak March last year, when the earlier Easter break reduced working days and significant model changeovers impacted output levels.
Car manufacturing in the month of March grew for the first time in 12 months, driven by robust export demand that increased by 30.6%, with almost three quarters (73.3%) of all output shipped overseas. However, production for the UK market fell by 6.1%. Electrified vehicle production also rose, by 38.5% – more than twice the rate of total production – to 31,661 units, to account for almost half of all UK car output (45.0%).
The SMMT noted that the proposed revisions to the ZEV Mandate have been welcomed by manufacturers, evidence that government recognises some of the challenges facing the industry, not least the absence of robust consumer demand for EVs which is undermining competitiveness. In addition, given the UK is a significant producer of zero emission commercial vehicles, particularly for the domestic market, extensions to the grants for plug-in vans and trucks are critical if this vital market is going to grow in accordance with mandate ambitions.
The EU continued to be the largest destination for UK car exports, accounting for 57.2% of all shipments. Ahead of the introduction of new tariffs, the US remained the second largest export market, comprising 15.0% of exports, followed by China (8.5%), Turkey (2.7%) and Japan (2.6%). Exports to all top five markets rose for the month, with the EU up by 28.9%, the US 36.1%, China 86.0%, Turkey 272.1% and Japan 91.8%.
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By GlobalDataCV production also rose, up by 8.2% to 8,700 units, in comparison with a weak March 2024 when volumes were constrained by both Easter timing, and a softening of output following 2023’s post-Covid pent-up demand. As in previous months, CV growth was driven by domestic demand, which rose by 77.9% to 5,218 units. Conversely, CV exports fell by 31.8% to comprise just 40.0% of output. The EU remains the sector’s largest market by far, accounting for 94.2% of exports in the month.
Quarterly output down
As a result, overall UK car production for Q1 2025 was down slightly, by 3.2%, but with exports up 4.4%, while CV output was down a more significant 27.1%, and exports down by 50.3%. Given the figures reflect the level of demand ahead of the announcements of new US tariffs, manufacturers face considerable uncertainty heading into quarter two as US demand likely weakens with knock on effects on other markets and the supply chains.
The SMMT said that ‘trade discussions must continue at pace to reach a deal that supports jobs, demand and growth on both sides of the Atlantic’.
The SMMT also warned that increased protectionism and retaliatory tariffs being levied in key markets mean a rapid response from government is needed, given the immediate challenges facing the industry’s exports.
Mike Hawes, SMMT Chief Executive, said: “A March uplift to manufacturing is overdue good news, although the performance was boosted by a comparatively weaker month last year, when holiday timings and product changeovers combined to reduce output. With the last quarter showing demand for British-built cars rising overseas, navigating the new era of trade uncertainty is now the major challenge. Government has rightly recognised automotive manufacturing’s critical role in Britain’s export economy and must now show urgency and creativity to deliver a deal that supports our competitiveness, spurs domestic demand for the latest cleanest vehicles, and helps factory lines flourish.”
