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UK Vehicle Production Hits Lowest Level Since 1953
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2025-10-08
UK car and van production in the first half of 2025 hit its lowest level since 1953 (excluding Covid lockdowns). Car output fell 7.3%, while van production dropped 45% due to Vauxhall’s Luton plant closure. Uncertainty over US tariffs caused some manufacturers to slow or halt production. A US-UK tariff deal reducing automotive tariffs from 27.5% to 10% took effect at the end of June, boosting June production slightly. Electric vehicle production grew 1.8%, reaching a record 25% of total output. The UK government reinstated EV grants of up to £3,750, but unclear eligibility criteria have confused manufacturers and consumers. SMMT CEO Mike Hawes described the period as “depressing” but hopes it marks the industry’s bottom. He noted that to meet the government’s target of 1.3 million vehicles per year by 2035, the UK needs one or two new carmakers. While EV grants aim to support the market, qualification depends on carbon emissions and verified targets, with details yet unclear. The UK automotive sector is tackling challenges from US tariffs and growing Chinese competition.
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