The British car manufacturing sector is having some rough times in 2025. Car manufacturing overall dropped by 3.8% in January to 71,153 units, a far cry from the electric vehicle (EV) future where business is booming. As highlighted in the latest reports from the Society of Motor Manufacturers and Traders (SMMT) and Auto Trader, EV interest is surging even as the broader market struggles. It’s a tale of two worlds—traditional cars are stalling, but EVs are picking up speed. Here’s what’s happening on the factory floor:
- EV Output Up: Production of battery electric (BEV), plug-in hybrid (PHEV), and hybrid (HEV) vehicles rose 1.5% to 30,028 units in January, per SMMT data.
- Market Share: These electrified models made up 42.2% of all cars built—the best monthly haul since December 2022’s 47.2%.
- Overall Dip: Total car production still fell, dragged down by weaker petrol and diesel numbers.
Factories are churning out EVs like never before. It’s a bright spot when exports—over 80% of UK-made cars—are facing global trade hiccups.
People can’t get enough of EVs. Auto Trader’s numbers show a real hunger:
- Web Traffic: Visits to their new car section jumped 15% month-on-month in February and 23% year-on-year.
- Plate Buzz: The new ‘25’ plates due in March drive this spike—it’s a big shopping season for car buyers.
“UK drivers are focused on EVs as the new ‘25’ plates arrive,” WhichEV.net noted on March 1, 2025. Discounts are sweetening the deal too—new EV discounts eased from 11.3% in January to 10.8% in February, but they’re still luring folks in.
Why the EV Love?
So, what’s fueling this? It’s a mix of push and pull:
- Government Targets: The Zero Emission Vehicle (ZEV) mandate ramps up to 28% EV sales in 2025—makers are pushing hard to hit it.
- Model Appeal: MG’s ZS and MG 4 topped demand charts, showing affordable EVs are clicking with buyers.
- Green Shift: More folks want cleaner rides, even if the overall market’s down.
Mike Hawes, SMMT Chief Executive, put it bluntly: “UK vehicle producers face a perfect storm of global trade uncertainty, challenging manufacturing conditions and a market transition which is proving tougher than expected.” Yet, EVs are bucking that storm.
Challenges Linger
It’s not all rosy, though. The industry’s got hurdles:
- Funding Plea: Hawes urged quick use of the £2 billion Automotive Transformation Fund to keep things rolling.
- Discount Pressure: Heavy EV discounts—up to 10.8%—aren’t sustainable long-term, industry voices warn.
Production is down overall, and private buyer demand is soft. The focus on fleet sales is propping up EV numbers, but broader growth needs a nudge.
EVs are the UK’s silver lining right now. As highlighted in the latest reports from the Society of Motor Manufacturers and Traders (SMMT) and Auto Trader, 42.2% electrified production share in January could climb higher with March’s new plates. The government’s mulling tweaks to ZEV rules—maybe easing fines or tweaking targets. If they play it right, 2025 might see EVs hit 24% of sales. It’s a bumpy road for cars, but electric’s got the juice to keep moving.
