UK’s EV production increases nearly 40% in March, reports SMMT

UK car and commercial vehicle production rose by 17.1% in March, reaching 79,018 units, according to the Society of Motor Manufacturers and Traders (SMMT).

This increase follows a weaker March in the previous year, which was impacted by an early Easter break and significant model changeovers.

Car manufacturing saw its first growth in 12 months, driven by strong export demand, which increased by 30.6% with nearly three-quarters (73.3%) of output shipped overseas. In contrast, production for the UK market declined by 6.1%.

Electrified vehicle (EV) production also experienced substantial growth, rising by 38.5% — more than twice the rate of total production — to 31,661 units. This means that EVs accounted for almost half (45.0%) of all UK car output in March.

The SMMT noted that recent proposed revisions to the ZEV Mandate have been welcomed by manufacturers, indicating that the government acknowledges some of the industry’s challenges, particularly the lack of robust consumer demand for EVs. The organization also emphasized the importance of extending grants for plug-in vans and trucks, given the UK’s significant production of zero-emission commercial vehicles.

The EU remained the largest destination for UK car exports, accounting for 57.2% of all shipments. The US was the second-largest export market (15.0%), followed by China (8.5%), Turkey (2.7%), and Japan (2.6%). Exports to all top five markets increased for the month.

Commercial vehicle (CV) production also saw an increase of 8.2% to 8,700 units, compared to a weak March 2024. Domestic demand drove this growth, rising by 77.9%, while exports fell by 31.8%. The EU remains the primary market for CV exports, accounting for 94.2% of shipments in March.

Despite the positive March figures, overall UK car production for Q1 2025 was down slightly by 3.2%, although exports rose by 4.4%. CV output for the quarter was down more significantly by 27.1%, with exports down by 50.3%.

The SMMT highlighted the uncertainty facing manufacturers in the second quarter of this year due to new US tariffs and their potential impact on demand and supply chains. The organization stressed the need for ongoing trade discussions to support jobs, demand, and growth.

“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,” said Mike Hawes, SMMT Chief Executive. “With the last quarter showing demand for British-built cars rising overseas, navigating the new era of trade uncertainty is now the major challenge.”

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 outlook forecasts a 7.8% decline in light vehicle production for 2025, to 818,200 units, followed by a slight increase in 2026. However, the SMMT believes that a favourable government strategy could boost production to 834,900 units and drive further growth in the industry.