UK vehicle production fell sharply in February, reflecting ongoing struggles in the auto industry amid global economic uncertainty.

According to the Society of Motor Manufacturers and Traders (SMMT), total car and commercial vehicle output dropped nearly 12% year-on-year to 82,178 units. Production of battery electric, plug-in hybrid, and hybrid vehicles also declined by 5.6%.

February marked the twelfth consecutive monthly decline for British car production, as automakers face rising costs, weakening demand, tighter environmental regulations, and increasing competition from China.

Adding to industry woes, U.S. President Donald Trump announced a 25% tariff on imported vehicles late Wednesday, raising fears of retaliatory trade measures. The U.S. is Britain’s second-largest car export market after the EU, accounting for nearly 20% of exports. In fact, over 80% of UK-made cars in February were shipped overseas.

SMMT CEO Mike Hawes urged the UK and U.S. governments to reach a swift agreement, warning that additional tariffs on UK-made cars now seem likely.

Domestically, car production plummeted by 33% to just 13,780 units in February, as UK consumers delay major purchases amid high inflation, slow interest rate cuts, and broader economic concerns.

On the fiscal front, UK Finance Minister Rachel Reeves scaled back spending plans on Wednesday in an effort to meet budget targets. However, global economic risks may force the government to consider tax increases later this year.

Hawes criticized the lack of industry support in Reeves’ latest budget update, saying it offered "no relief for the sector or for consumers." Photo by Nick Moyes, Wikimedia commons.