UK car output dipped slightly in April

UK car production remained nearly flat in April, dropping just 0.7% to 56,135 units, according to data from the Society of Motor Manufacturers and Traders (SMMT). For the year to date, output has fallen 5.4% to 257,024 units, signaling a stabilization at reduced levels. The SMMT expressed concern over the EU’s proposed ‘Made in Europe’ policy, which could exclude UK-made vehicles, parts, batteries, and raw materials from accessing the bloc’s largest export market. The organization argues this would harm competitiveness, disrupt investment, and weaken manufacturing on both sides of the Channel. An additional threat looms with stricter rules of origin for electric and plug-in hybrid vehicles set to take effect in January 2027, which could trigger tariffs. Combined, these issues risk destabilizing an €80 billion annual trading relationship, posing a major challenge to the European automotive industry amid global competition. SMMT Chief Executive Mike Hawes highlighted ongoing challenges, including high energy costs and uncertainty in UK-EU trade relations. He emphasized that excluding the UK from the ‘Made in Europe’ proposals, alongside tougher 2027 regulations, could undermine the industry’s growth prospects. Hawes urged the upcoming EU-UK Summit to address these concerns and secure solutions that protect mutual competitiveness.