UK Car Production Drops Amid Trade Disruptions

UK car production declined 6.5% year-on-year in June 2025 to 69,006 units, bringing year-to-date output down 11.9% as global trade disruptions and economic uncertainty weighed on the sector. Despite recent headwinds, the industry remains heavily export-driven, with 76.9% of cars produced this year shipped overseas. The EU continues to be the UK’s largest export destination, accounting for 54.4% of shipments, followed by the US (15.9%), China (7.5%), Turkey (4.1%) and Japan (2.7%). Together, these five markets represent over 80% of the UK’s automotive exports. Export volumes fell for a third consecutive month, plunging 18.7% in June. Still, the US held its position as the UK’s top individual export market, underscoring the significance of the UK-US trade agreement that took effect on June 30. The deal introduces reduced tariffs for UK vehicle exports to the US and is expected to provide a foundation for future growth in the sector.