UK vehicle production fell by 8.2% year-on-year in March, according to new data published by the Society of Motor Manufacturers and Traders (SMMT).
The total of 72,511 vehicles produced included 69,755 cars, a relatively stable total down by 0.8% compared with March 2025. However, the 2,756 commercial vehicles produced represented a 68.3% decline, which the SMMT attributed to a major manufacturer restructuring in 2025.
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Car output was said to be affected by a part supply challenge temporarily pausing production at a large plant, weak exports to Asian and US markets, and model changeovers.
Export vehicle production fell by 7.4% year-on-year, with robust demand from the EU said to be offset by declining demand from countries such as the United States, China and Japan, while production for the domestic market fell by 10.1%.
Overall in the first quarter of 2026, UK vehicle production fell by 13% year-on-year, with car and CV production down by 6.7% and 70% respectively.
SMMT says UK and EU must work together
Mike Hawes, chief executive at the SMMT, said: “Car production stabilising in March is welcome news for both assembly and the wider supply chain. Government’s recent intervention to bring down electricity costs will provide a major and long-called-for boost, but the scheme’s benefits must be delivered urgently as the geopolitical situation offers little optimism.
“We must ensure any ‘Made in Europe’ proposals from the European Commission do not exclude the UK as the two industries are integrated such that both would suffer if the free trade provisions enshrined in the Brexit deal were undermined.
“The EU and UK must work together to avoid that scenario – and the looming threat of tariffs arising from stricter rules of origin on electrified vehicles – to ensure a positive outcome for industry, economies and consumers on both sides of the Channel.”
Reacting to the data, John Cassidy, managing director at Close Brothers Motor Finance, said: “Following February’s falling numbers, a further decline in March will cause concern for manufacturers as the impact of geopolitical events start to take hold.
“The conflict in the Middle East, the threat of further tariffs and concerns that the UK could be omitted from the EU’s ‘Made in Europe’ trusted partner agenda are presenting additional headaches for manufacturers who are already grappling with other challenges such as the ZEV mandate.
“The onus falls on the Government to ensure the UK holds trusted partner status, and works to remove barriers hampering vehicle production, allowing car makers to cater for growing demand for EV adoption.”