UK car manufacturing reached its lowest point since 1953 except for the pandemic year 2020 because the industry faces worldwide supply chain disruptions and slow electric vehicle adoption. The Society of Motor Manufacturers and Traders (SMMT) reports that vehicle production decreased by 12% to 417,200 units during the first half of the year.
The steep decline occurred after Donald Trump implemented 25% US import tariffs which led Bentley Rolls-Royce and Jaguar Land Rover to stop their export operations. The temporary agreement enables 100,000 British vehicles to enter the US market each year at a 10% tariff rate which provides some comfort but restricts market expansion.
The sector experienced two major setbacks from factory shutdowns at Stellantis’ Luton van plant and the unclear nature of new UK EV subsidies. The Labour government’s £650 million subsidy plan faces uncertainty because details about the program remain unclear and many imported models will not qualify for the benefits due to emission standards.
The industry shows cautious optimism about recovery after June’s 7% increase in production. The current projections indicate that 2025 will see only 755,000 cars produced which falls significantly short of the original 2 million target.
