FX.co ★ UK Car Production Drops Amid Trade Disruptions

In June 2025, car production in the UK experienced a 6.5% decline compared to the same period the previous year, resulting in a total of 69,006 units manufactured. This downturn contributed to an 11.9% decrease in the year-to-date production figures, influenced largely by global trade disruptions and prevailing economic uncertainties. Despite these challenges, the UK automotive industry continues to be predominantly export-focused, with 76.9% of the vehicles produced this year destined for international markets.

The European Union remains the principal export market for UK cars, accounting for 54.4% of overseas shipments. Following the EU, the United States represents 15.9% of exports, with China, Turkey, and Japan comprising 7.5%, 4.1%, and 2.7%, respectively. Collectively, these five markets account for over 80% of the UK's automotive exports. However, export volumes have decreased for three consecutive months, with an 18.7% decline noted in June alone. Despite this trend, the United States continues to be the UK's primary individual export market, highlighting the importance of the UK-US trade agreement that was implemented on June 30. This agreement lowers tariffs on UK vehicle exports to the US and is anticipated to foster future growth within the sector.