Britain’s vehicle production fell nearly 12% in February, marking the twelfth consecutive month of declines, as automakers grapple with economic uncertainty, rising costs, and competition from Chinese rivals, according to data from the Society of Motor Manufacturers and Traders (SMMT).
Total car and commercial vehicle output dropped to 82,178 units, while production of battery electric, plug-in hybrid, and hybrid vehicles declined 5.6%, the industry group said. Domestic production was hit particularly hard, falling 33% to 13,780 units.
The drop in output comes as the U.S. imposes a 25% tariff on imported vehicles, a move that could further disrupt the sector. “The U.S. and UK must come together immediately and strike a deal that works for all,” SMMT chief executive Mike Hawes said, warning that additional tariffs on British-made cars appeared likely.
With the U.S. being the second-largest importer of UK-made cars after the EU, trade tensions and domestic economic pressures, including inflation and slow interest rate cuts, continue to weigh on the industry. Hawes noted that the latest UK budget update offered no relief for automakers or consumers.