UK car and commercial vehicle production rose in March 2025. This is in contrast to a weak performance last year. According to new data from the Society of Motor Manufacturers and Traders (SMMT), output increased by 17.1% to 79,018 units.
Car production grew for the first time in a year, helped by strong export demand, which increased by 30.6%. Nearly three-quarters (73.3%) of UK-built cars were shipped abroad. While overseas interest was strong, domestic demand dropped 6.1%. Electrified models played a bigger role too, with output rising 38.5% to account for 45% of all cars built.
The US, facing upcoming tariff changes, held its position as the second-largest export market behind the EU, which was responsible for 57.2% of UK car exports. Interestingly, exports to China went up by 86%, while Turkey and Japan recorded even more growth at 272.1% and 91.8%, respectively.
Commercial vehicle (CV) output also went up 8.2% to 8,700 units, again compared to a weak March last year. Domestic demand led the way, rising 77.9%, but exports dropped by nearly a third, making up just 40% of total CV production. The EU remained the main destination for UK-built CVs, accounting for over 94% of exports.
Despite the March rebound, combined Q1 numbers are still down. Car production dropped 3.2% overall, though exports were up 4.4%. CV manufacturing, however, fell quite significantly by 27.1%, with exports dropping 50.3%. The industry now faces fresh challenges, particularly from new US tariffs that could disrupt trade flows and supply chains in the months ahead.
Manufacturers are asking the UK government to respond quickly to rising issues, stressing the need for a stable trading environment and a competitive industrial strategy.
Mike Hawes, SMMT Chief Executive
“A March uplift to manufacturing is overdue good news, although the performance was boosted by a comparatively weaker month last year, when holiday timings and product changeovers combined to reduce output. With the last quarter showing demand for British-built cars rising overseas, navigating the new era of trade uncertainty is now the major challenge. Government has rightly recognised automotive manufacturing’s critical role in Britain’s export economy and must now show urgency and creativity to deliver a deal that supports our competitiveness, spurs domestic demand for the latest cleanest vehicles, and helps factory lines flourish.”
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