The Society of Motor Manufacturers & Traders (SMMT) reported a decline in UK vehicle production in January 2025, especially in the commercial vehicle sector.
Production Declining in January
UK vehicle production declined by 17.7% in January 2025, with 78,012 units produced. Commercial vehicle production went down by 41.5%, with 6,908 units produced in January 2025, according to the latest SMMT data. The declining performance follows January 2024 data, when the output declined by 27.5% for commercial vehicles, reflecting weakness in key markets, specifically the EU, China and the UK itself, in combination with planned model changeovers.
Export demand continued to drive UK commercial vehicle production, accounting for 61.7% of van, truck, taxi, bus and coach production. In terms of exports, 4,259 units were shipped overseas, representing a 46.6% year-on-year decline, with 97.1% destined for the EU. The UK market volumes also declined by 31.1% to 2,649 units. The performance must be set in context with January 2024 data, which represented the best commercial vehicle output since 2008.
The decline can be attributed to plant restructuring and slower than anticipated rollout of new models as manufacturers respond to slow demand in the UK and other key markets. The industry is urging the government to prioritise the needs of the UK automotive sector in terms of its industrial and trade strategies. These strategies should be combined with measures that would ensure a healthy domestic market alongside a quick release of the £2 billion promised by the government, which could boost the sector via the Automotive Transformation Fund. This would help shore up the competitiveness of the UK’s largest exporter of manufactured goods, a sector that could deliver £50 billion in UK growth over the coming decade
Mike Hawes, Chief Executive at the SMMT, explained: “UK vehicle producers face a perfect storm of global trade uncertainty, challenging manufacturing conditions and a market transition which is proving tougher than expected. The sector is doing all it can to keep production plans on track but needs the government to ensure that automotive is at the heart of its forthcoming industrial and trade strategies with promised funding invested as soon as possible. Doing so will help ensure our competitiveness and safeguard the billions of pounds of investment, jobs and economic growth which is now at stake.”
