ARTICLE
31 March 2025

Felicity Edwards, Director, Automotive & Industrial, Comments On Today's SMMT UK Monthly Automotive Manufacturing Figures

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AlixPartners

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AlixPartners is a results-driven global consulting firm that specializes in helping businesses successfully address their most complex and critical challenges.
The automotive industry is clearly struggling and the downward trend in UK automotive production continues to highlight this. Compounding the issue of reduced volumes...
United Kingdom Transport

“The automotive industry is clearly struggling and the downward trend in UK automotive production continues to highlight this. Compounding the issue of reduced volumes is the challenge OEMs continue to face around managing the transition to electric vehicles (EVs), new competition and shifting global trade dynamics.

“From April, EVs will face new taxation measures and will no longer be exempt from Vehicle Excise Duty: quite a turnaround from them previously benefitting from low tax incentives. This rollback risks dampening demand at a time when manufacturers are facing ambitious targets, and failing to meet these goals, potentially considerable penalties.

“Further, beyond tax hikes, competition is intensifying for traditional OEMs in the sector, too. Legacy market players face a steeper climb compared to newer EV-first manufacturers who are gaining have a strong foothold in the market. This dynamic could unintentionally put domestic legacy manufacturers at a disadvantage while giving a competitive edge to foreign entrants. The situation becomes even more complex when considering global trade issues, which could have a knock-on effect on supply chains, too.”

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