According to a Reuters report, data released by the Society of Motor Manufacturers and Traders (SMMT) on February 27 showed that due to weak sales in major markets such as the EU, China, and the UK, the UK's car production had a weak start in 2025, declining nearly 18% year-on-year in January to 78,012 units.
Last month, the production of battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs), and hybrid vehicles (HEVs) in the UK increased by 1.5% compared to the same period last year, reaching 30,028 units. This accounted for 42.2% of total UK car production in January, the highest level since December 2022.
The EU remains the largest market for UK-produced passenger vehicles, accounting for more than half (52.0%) of UK passenger car exports in January, followed by the US (18.6%), China (6.2%), Turkey (3.5%), and Japan (3.4%). However, in terms of sales volume, exports to the EU and China fell by 11.2% and 46.3%, respectively, while exports to the US, Turkey, and Japan increased by 12.4%, 36.9%, and 8.1%, respectively.
SMMT Chief Executive Mike Hawes stated, "UK car manufacturers are facing a perfect storm, including global trade uncertainties, a challenging manufacturing environment, and a more difficult-than-expected market transition." Global automakers are currently struggling with multiple challenges, including rising costs, weak demand, intense competition from Chinese rivals, carbon emission regulations, and the potential tariff threats from US President Donald Trump.
In a press release, Hawes once again urged the UK government to "place the automotive sector at the heart of upcoming industrial and trade strategies." SMMT emphasized that these strategies must be combined with measures to ensure the health of the domestic UK market, particularly the electric vehicle sector, which is a key investment consideration. The government should also swiftly allocate the promised £2 billion through the Automotive Transformation Fund to support the industry's development.
Due to rising losses and debt, UK luxury carmaker Aston Martin announced on February 26 that it would cut 5% of its workforce and delay the launch of its first fully electric vehicle.
