By Iain Gilbert
Date: Thursday 27 Mar 2025
(Sharecast News) - UK car production fell for a 12th consecutive month in February, according to the Society for Motor Manufacturers and Traders, which also said Rachel Reeves' Spring statement did nothing to alleviate the pressure on manufacturers.
A total of 82,178 new cars and commercial vehicles rolled off the production line last month, an 11.6% year-on-year drop, with model changeovers and plant restructuring being cited as key reasons for the decline.
The UK market was down by a third, while shipments to the EU and China fell by 9.6% and 10.9%, respectively. Shipments to the US surged 34.6% but fears that this could soon be reversed continued to weigh on the sector following Donald Trump's announcement that he will slap 25% tariffs on imported cars coming into the US.
The SMMT also said a lack of assistance for the sector in Chancellor Rachel Reeves' Spring statement represented a "missed opportunity" amid "worrying times" for UK car makers.
SMMT chief executive Mike Hawes said: "The market transition is not keeping pace with ambition and, while the industry can deliver growth - and green growth at that - it needs policies to deliver that reality.
"It was disappointing to hear a spring statement that did nothing to alleviate the pressure on manufacturers and, moreover, confirms the introduction next month of additional fiscal measures which will actually dissuade consumers from investing. Without substantive regulatory easements our manufacturing viability remains at risk and the UK's transition to zero emission mobility under threat."
Reporting by Iain Gilbert at Sharecast.com
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