UK Vehicle Production : 2024-25 (Q1-Q3)

Do you want the good news or the bad news? Well, there is only the latter here. UK vehicle production is nothing short of embarrassing. It's been building for many years and little has been done to address the situation even as it reaches a disastrous level.

Let's dissect it by diving deeper. Passenger car production is 665,000, down from 734,600 in 2025. You would have to go to the early 1950's to see lower figures. That was when a devastated post war Britain was trying to get back on its feet. 

So far, 151,000 sales in the UK were for locally produced cars. That represents 8.1% of total sales. In other words, 91.9% of the cars sold in the UK this year are imports! Just as well no one cares. 

Can commercial vehicle sales salvage something from this disaster? Of course, I jest. It's even worse. Production is at 45,000 units, down from 118,500. No, that's not a typo. So tell us then, how bad is it? 

I have data going back to and including 1945. This is by far the worst over that time. I don't have detailed data on why this is, so all I can do is speculate. 

Stellantis is the main CV producer in the UK and they seem to be having problems either making or selling vans. Truck makers such as Leyland DAF and Dennis Trucks are still doing OK but they can't stem the slump. Exports are the hardest hit. 

Buses don't make up huge numbers but the government is subsidising the switch to electric buses. The UK's largest bus operator recently took the offer and bought buses made in China. Taxes spent on overseas manufactured buses. Just as well no one cares. 

By combining the above figures, the picture won't be any brighter. A solution could be an import tax on import gradually increased each year and then manufacturers encouraged to start local UK production. 

The market is big enough to support that. Some of the revenue could be used to incentivise buying locally made.

Would this increase vehicle prices overall in the UK? Not if they bought locally made. Would other nations understand the precarious situation or cry foul and threaten 'consequences'? The latter. 

Don't other nations impose import duties to 'protect' their markets? Some like China, Korea and India don't even need protection. Surely, they would be supportive, seeing as they do it. Again, I jest. Double standards are the default setting of international dealings. 

So here I am, proposing a way forward to save a car industry on life support but realistically knowing nothing will change. It was a productive UK industry while it lasted but it could end up being a few luxury brands only and maybe a few trucks. Just as well no one cares. 

EU to Backtrack on China Sourced EVs?

Since November 2024, the EU imposed tariffs on Chinese sourced electric cars (BEV) due to unfair advantage through state subsidies. Now pressure is being applied by a European car maker who manufacture a BEV in China to make an exception for them. What is the reasoning?

According to VW's SEAT/Cupra, they say it is "an unfair tariff that penalises strategic investments." So making cars in China rather than Europe is 'strategic' or the definition of the word 'helping achieve a plan'. Protecting European jobs isn't the plan nor punishing perceived infair subsidies, so I guess increased profit is the strategic plan.  

After deciding to build a car somewhere and then legislation is introduced that affects that decision adversely is a bitter pill to swallow. Getting an exemption would seem an ideal solution. The downside is opening the door to many others doing the same and that works against the initial tariff's aim. 

Other brands make electric cars in China. BMW decided to make the MINI Aceman in China rather than the UK but would retaining tariffs lead BMW to start making them in the UK? Volvo produces the EX30 in Belgium and that circumvents tariffs. It seems Dacia will bring the Spring model production back to Europe in 2026. I wonder how the manufacturers that accepted BEV tariffs and are moving production back to Europe are now feeling?

 As to whether tariffs are a good idea or not in this situation is not an argument I want to join. As a general observation though, SEAT/Cupra is looking at their personal situation and they want an exception for their benefit. Considering the effect on others and the impact on the overall objective becomes secondary. 

BEV sales in Europe aren't going that well anyway and plans to impose a ban on selling new cars with internal combustion engines in the EU from 2035 have been abandoned. I wonder if trying to beat the tariff will reap that much anyway.

Brands From China In France : 2025 (Jan -Nov)

The chart to the right shows sales of brands that are based in China. Rk is where they rank compared to all brands, MS is market share and +/- shows increases over 12 months of 2024. 

There have been some impressive gains plus some new ones, n/a showing that. Saying that, compared to many other markets, the 3.1% overall penetration is low. 

MG is well established (since 2020) and BYD has wasted no time in moving up the rankings, 2024 is its first full year here. Leapmotor and Xpeng have done well in a short time as well. 

It will be interesting to see what develops from here. The EU have set tariffs based on what they have determined are unfair subsidies. These are not imposed as a blanket figure but vary according to the calculated amount of the subsidy. 

This will have impacted the numbers compared to the UK, where they haven't acted on this issue so far. I would like to do an article on Norway, which has like the UK, does not impose tariffs. I just don't get enough data to do that. 

For others in the series: Australia, New Zealand, Singapore. The UK.

Data source: AAADATA. 

Photo source: MG (EHS - top) and Xpeng (G6 -bottom) France.