UK vehicle manufacturing hits 70-year low as industry faces tariff turmoil and EV grant confusion
Briefly

UK car and van production is at its lowest since 1953, with car output declining 7.3% and van production decreasing by 45%. Key factors include uncertainty over US tariffs and factory closures like Vauxhall’s Luton plant. Despite a slight increase in June, the automotive sector is weak. The UK’s goal of 1.3 million vehicle production by 2035 is seen as ambitious. Electrified vehicle production grew by 1.8%, accounting for over 40% of total vehicles. Concerns persist over the unclear criteria for the new EV grant scheme.
UK car and van production has fallen to its lowest level since 1953, with car output down 7.3% and van production down 45%. The sector faces uncertainty from tariffs and factory closures.
SMMT’s chief executive expressed that 2025 might be the industry’s lowest point and criticized the ambitious target to reach 1.3 million vehicles annually by 2035.
In contrast to the overall decline, production of electrified vehicles rose by 1.8%, making up more than two in five vehicles produced in the UK.
Concerns were raised about the government's new EV grant scheme, as eligibility criteria remain unclear despite the return of incentives for low-emission vehicles.
Read at Business Matters
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