Summary
In the first half of the year, UK car and van production reached its lowest level since 1953, excluding the COVID-19 shutdown. Factors such as the closure of Vauxhall's van plant and uncertainty over US tariffs contributed to the decline. A new US-UK tariff deal and government electric vehicle (EV) grants aim to improve the situation.
Key Facts
- UK car and van production dropped to its lowest since 1953 in the first half of this year.
- Car output decreased by 7.3%, and van production fell by 45%.
- Uncertainty about US tariffs affected production, but a recent tariff deal may improve confidence.
- The US-UK tariff deal, effective from June 30, reduces car tariffs from 27.5% to 10%.
- The UK government introduced new electric vehicle grants, up to £3,750, for certain vehicles.
- Confusion exists about which vehicles qualify for the new EV grants.
- Electrified vehicle production, including battery and hybrid cars, rose by 1.8%.
- SMMT reported a small rise in vehicle production in June following the tariff deal.
