UK car output dipped slightly in April

UK car production was broadly steady in April, down 0.7% to 56,135 units and down 5.4% year-to-date (257,024 units), according to SMMT. While output appears to be stabilising, the sector faces downside risks from high costs (notably energy) and policy uncertainty: the EU’s proposed ‘Made in Europe’ rules and tougher rules-of-origin for EVs from January 2027 could restrict UK-made cars, parts and batteries’ access to the EU market. SMMT warns unresolved measures could damage competitiveness, disrupt investment and threaten an €80bn-a-year UK–EU automotive trading relationship. The combination of weaker production, policy risk and potential tariffs poses downside pressure on UK manufacturers and could weigh on the UK 100 index via investor concern over sector earnings, exports and supply-chain investment.