UK car production rose by 17.1% in March 2025 to 79,018 units, the first monthly growth in 12 months, according to SMMT figures. The rise comes against a weaker March last year and was driven largely by a 30.6% increase in exports, with 73.3% of all cars built headed overseas.
Electrified vehicle production performed strongly, up 38.5% year-on-year, now accounting for 45% of total car output. However, domestic production fell by -6.1% for the month.
Mike Hawes, SMMT chief executive, said: “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.”
Despite the March increase, first-quarter production remains down -3.2% compared to 2024. Manufacturers are concerned about the impact of new US tariffs and increasing protectionism, which could further pressure export volumes.
Hawes added: “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.”
The latest independent forecasts suggest light vehicle output will fall -7.8% in 2025 to 818,200 units before a modest recovery in 2026.
