Vehicle production in the UK dropped sharply last month, with just 59,203 units manufactured in April - the lowest April figure in over 70 years, excluding the pandemic-hit 2020. The Society of Motor Manufacturers and Traders (SMMT) attributed the decline to US trade tariffs, the timing of Easter reducing working days, and the broader shift from petrol to electric vehicles (EVs).
Production was down 16% compared to April 2023, and 25% lower than March, when many manufacturers rushed exports ahead of new US tariffs introduced by former President Trump. Jaguar Land Rover has been particularly impacted, facing tariffs of 27.5% on its exports to the US, significantly affecting its bottom line. The delay in implementing a new UK-US deal, which would lower tariffs to 10% for up to 100,000 vehicles, has also caused frustration.
Export demand fell by over 10%, particularly from key markets like the US and EU. Total output for the first four months of 2024 is now the lowest since 2009. Industry experts warn this is part of a broader global trend, but also point to unique challenges in the UK, such as policy uncertainty around EV manufacturing and lower barriers to Chinese imports.
Manufacturers continue to call for greater policy stability to support long-term investment in the UK automotive sector.
