The United Kingdom (TADAWUL:4280)’s vehicle production, incorporating both electric and hybrid cars, fell in February, according to recent industry data.
This decline underscores ongoing challenges the automotive sector is facing amidst increasing worldwide economic uncertainties.
The Society of Motor Manufacturers and Traders (SMMT) data revealed that the total production of cars and commercial vehicles dropped nearly 12% from the previous year to 82,178 units last month.
Furthermore, the output of battery electric, plug-in hybrid and hybrid cars fell by 5.6%.
The data also highlighted that car production in Britain has been in a steady decline for twelve consecutive months.
In a move that further complicates the situation, U.S. President Donald Trump imposed a 25% tariff on imported vehicles late Wednesday, the decision which has shaken automakers and escalated trade tensions, with threats of retaliation from affected U.S. allies now looming.
The U.S. is the second-largest importer of British-made cars after the European Union, accounting for nearly a 20% share, according to SMMT data. More than eight out of ten cars produced in Britain in February were exported.
On the domestic front, British car production for the local market in February plummeted approximately 33% to 13,780 units compared to the same period last year.
Source: Investing