Latest news with #SocietyofMotorManufacturersandTraders
Yahoo
3 days ago
- Automotive
- Yahoo
UK vehicle production decline hits record low in April 2025: SMMT
The Society of Motor Manufacturers and Traders (SMMT) has revealed a 15.8% drop in UK car and commercial vehicle production in April 2025. For the month, 59,203 units were manufactured, marking the lowest April output since 1952, barring the exceptional circumstances in 2020 during the first Covid lockdown. Car production in the UK experienced an 8.6% decline, totalling 56,534 units, influenced by the later timing of Easter, model changeovers, and reduced demand from key export markets. The commercial vehicle sector registered a decline of 68.6% to 2,669 units, primarily due to a plant closure and a return to normal demand levels for new heavy goods vehicles after a period of intense post-pandemic growth. Exports of cars saw a 10.1% drop, with the EU and US markets showing declines of 19.1% and 2.7%, respectively. Despite these drops, the EU remained the largest export destination, receiving more than half of all UK car exports, while the US accounted for 16.5%. In contrast, exports to China and Turkey increased by 44% and 31.2%, the report said. Commercial vehicle exports plummeted by 75.8%, with just over half of the production being sent abroad. Despite a 78.9% reduction in shipments, the EU continued to be the primary export market, accounting for 84.9% of the total. Domestic commercial vehicle output also saw a downturn, falling by 54.6%. SMMT chief executive Mike Hawes said: 'With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness. 'Government has recognised automotive manufacturing's critical role in driving the UK economy, having successfully negotiated improved trading conditions for the sector with the US, EU and India in the space of a month. 'To take advantage of these trading opportunities, we must secure additional investment, which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy. Get this right and the jobs, economic growth and decarbonisation will flow across the UK.' The industry is now awaiting the government's industrial strategy, which is expected to include measures to enhance the competitiveness of the UK's most valuable export sector, the body said. Last week, the SMMT reported a 49.8% surge in public service vehicle registrations in the UK in Q1 2025, marking the eighth consecutive quarter of growth. "UK vehicle production decline hits record low in April 2025: SMMT" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Automotive
- Yahoo
Trump tariffs help push U.K. auto sector to worst production figures in more than 70 years
The U.K.'s auto sector is reeling from its worst month for production since 1952—when the Morris Minor ruled the country's roads and Queen Elizabeth ascended to the throne—as Trump's tariff war added to a bearish environment for the country's biggest carmakers. U.K. plants producing cars like Range Rovers, Bentleys, and Toyotas pumped out 59,200 models in April, marking the lowest monthly output figure in more than 70 years, according to data from the Society of Motor Manufacturers and Traders (SMMT). Carmakers are set for their worst start to the year in production terms since 2009 and the depths of the Great Recession. Commercial vehicle exports fell by more than 75% in April as automakers digested the fallout of Donald Trump's tariffs on the car industry and his more sweeping plans announced on 'Liberation Day.' Cars bound for the U.S., which took around a sixth of the U.K.'s car exports, experienced a slight decline in April, with EU exports fuelling the biggest drop. U.K. luxury carmakers, including Rolls-Royce and Aston Martin, were regarded as being particularly vulnerable to a trade war because much of their appeal comes from keeping most production from its historic local plants. Jaguar Land Rover said in early April that it would be pausing U.S. shipments while it assessed the fallout from Trump's tariff announcements. The carmaker sold more than 128,000 cars to the States, its biggest market, in 2024. The end of March also marked the closure of Stellantis-owned Vauxhall's factory in Luton, where the carmaker employed more than 1,000 workers. Employees at the 120-year-old factory faced a stark ultimatum: a 140-mile relocation north or accepting a redundancy package. A calendar quirk of the Easter break falling later in 2025, which accordingly shuttered production for an extra two days over the bank holiday, also contributed to depressed production figures, the SMMT said. Indeed, March production figures showed nearly 80,000 vehicles being produced in the U.K. that month. April's awful production figures are likely to be an anomaly, and not just owing to the quirk of the calendar. Earlier in May, the U.K. and U.S. hammered out a landmark trade deal that would see import tariffs on cars to the States reduced from 25% to 10% for the first 100,000 vehicles. The development is expected to prevent a lot of pain in the U.K. auto market, and SMMT chief executive Mike Hawes is taking a victory lap after demonstrating the sector's influence on the U.K.'s international relations. 'Government has recognised automotive manufacturing's critical role in driving the UK economy, having successfully negotiated improved trading conditions for the sector with the US, EU and India in the space of a month,' said Hawes. 'To take advantage of these trading opportunities we must secure additional investment which will depend on the competitiveness and confidence that can be provided by a comprehensive and innovative long-term industrial strategy. Get this right and the jobs, economic growth and decarbonisation will flow across the UK.' This story was originally featured on
ITV News
4 days ago
- Automotive
- ITV News
An April fool? Trump trade war backfires as court blocks US president's tariffs
President Trump waited until April 2 to unveil his tariff policy, avoiding April Fool's Day. But the US Court of International Trade has left him looking foolish. It turns out that 'liberation day' was an exercise in overreach; the tariff scheme Trump unveiled to great fanfare in the Rose Garden in Washington is illegal. The panel of judges have decided the president did not have the authority to use the emergency powers legislation he used as justification. So where does this leave Trump's trade war? Well, he has marched his troops to the top of the hill, now he faces the prospect of a forced march down again. As things stand, the levies the president imposed on April 2, including the 10% baseline on all US imports and the 'reciprocal' tariffs of many countries, will have to be wound back. The legal ruling could disarm Trump of the tariff stick he's used to try to beat concessions out of China and the EU. But it's not over yet, the Trump administration says it will launch an appeal, and a higher court may take a different view. And, as the UK car industry is pointing out, this judgment doesn't affect them. 'Our initial understanding is that this does not apply to Section 232 tariffs, so the additional 25% levied on cars, steel and aluminium still applies,' says Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders. Hawes adds: 'The importance of confirming and implementing urgently the UK's deal on these products, therefore, still applies.' This is an important point. The trade deal between the UK and the US was announced on 9th May. Three weeks on, and we have the outline of an agreement but not much more in the way of detail and nothing resembling a legal document, ready to be signed. For now, every car that is shipped from the UK to the US attracts the extra 25% tax as soon as it hits dry land. As for the UK economy as a whole, economists aren't scrambling to revise their forecasts this morning. 'The US tariffs were never a game-changer for the UK economy in the first place, although they weren't helpful, so any cancellation of the tariffs or the deal with the US to limit them isn't going to be a game-changer either,' writes Paul Dales of Capital Economics. 'The one thing that remains constant when everything else is changing is the heightened uncertainty.' President Trump's trade policy has always looked chaotic. Today, it looks more ragged still and less under his control. Until now, the only person in the world who knew what would happen next was Donald Trump, and now not even he can be sure.
Time of India
4 days ago
- Automotive
- Time of India
UK's car output drops in April, sees worst start to year since 2009
Britain's vehicle output dropped sharply in April, marking the worst start to the year since 2009, due to weak export demand and the timing of Easter, industry data showed on Thursday. The drop comes as European carmakers strive to cut costs amid stiff competition, U.S. tariffs on auto imports, and a slowing global economy, with the outlook uncertain despite eased U.S.-China trade tensions. Total car and commercial vehicle production fell 15.8% from a year ago to 59,203 units in April, the lowest for that month since 1952, excluding the COVID-19 lockdown-hit 2020, according to data from the Society of Motor Manufacturers and Traders. UK car sales have fallen in three of the four months in 2025 so far. The April decline was driven by several factors, including the later timing of Easter, which reduced the number of production days in the month and contributed to production in March. Live Events Weak demand for cars in key export markets weighed on volumes, SMMT said. Shipments to the UK's two largest global markets, the EU and U.S., fell by 19.1% and 2.7%, respectively. "With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness," SMMT Chief Mike Hawes said in a statement. Britain has secured several trade accords since U.S. President Donald Trump announced sweeping tariffs, unleashing a trade war. Earlier this month, Trump and British Prime Minister Keir Starmer announced a limited bilateral trade agreement that includes cuts to U.S. tariffs on British car exports. In May, Britain also struck a deal with India cutting tariffs on goods while setting quotas for auto imports and repositioned itself closer to the European Union on defence, energy and agriculture. The SMMT said recent trade deals with the U.S., EU and India offer new opportunities, but warned that investment depends on a robust industrial strategy.
Hindustan Times
4 days ago
- Automotive
- Hindustan Times
UK's car output drops in April, sees worst start to year since 2009
May 29 - Britain's vehicle output dropped sharply in April, marking the worst start to the year since 2009, due to weak export demand and the timing of Easter, industry data showed on Thursday. The drop comes as European carmakers strive to cut costs amid stiff competition, U.S. tariffs on auto imports, and a slowing global economy, with the outlook uncertain despite eased U.S.-China trade tensions. Total car and commercial vehicle production fell 15.8% from a year ago to 59,203 units in April, the lowest for that month since 1952, excluding the COVID-19 lockdown-hit 2020, according to data from the Society of Motor Manufacturers and Traders. UK car sales have fallen in three of the four months in 2025 so far. The April decline was driven by several factors, including the later timing of Easter, which reduced the number of production days in the month and contributed to production in March. Weak demand for cars in key export markets weighed on volumes, SMMT said. Shipments to the UK's two largest global markets, the EU and U.S., fell by 19.1% and 2.7%, respectively. "With automotive manufacturing experiencing its toughest start to the year since 2009, urgent action is needed to boost domestic demand and our international competitiveness," SMMT Chief Mike Hawes said in a statement. Britain has secured several trade accords since U.S. President Donald Trump announced sweeping tariffs, unleashing a trade war. Earlier this month, Trump and British Prime Minister Keir Starmer announced a limited bilateral trade agreement that includes cuts to U.S. tariffs on British car exports. In May, Britain also struck a deal with India cutting tariffs on goods while setting quotas for auto imports and repositioned itself closer to the European Union on defence, energy and agriculture. The SMMT said recent trade deals with the U.S., EU and India offer new opportunities, but warned that investment depends on a robust industrial strategy.
