The Society of Motor Manufacturers and Traders (SMMT) is calling on the UK government to prioritize the interests of small-volume automotive (SVM) brands in its upcoming industrial and trade strategy initiatives.
A report from the Society of Motor Manufacturers and Traders warns that luxury, high-performance, and niche car manufacturers in the UK are encountering challenges that could hinder their competitiveness and growth. According to the SMMT, brands like Aston Martin, McLaren, and Morgan are struggling to adapt to unstable market conditions, strict decarbonization regulations, and increasing production costs.
The study revealed that in 2024, the UK’s high-value, small-volume car manufacturers generated over £5.5 billion in total turnover, with approximately 90% of the vehicles exported. Although these manufacturers contributed only 4% to the UK’s total car production, the sector accounted for 12% of the overall market value.
SMMT chief executive Mike Hawes emphasized that Britain’s luxury, performance, and niche vehicle producers are leaders in automotive design, engineering, and manufacturing, representing a true British success story.
“A successful sector would deliver the economic growth, well-paid jobs, and exports that government craves, helping keep Britain firmly on the global automotive map,” he added.
Industry Minister Sarah Jones stated that Britain’s luxury carmakers are globally recognized and play a vital role in the UK economy. She underscored efforts to strengthen the sector through securing major trade deals with the U.S. and India to reduce tariffs and boost exports.
The minister also mentioned that the modern industrial strategy will provide long-term support by fostering investment, driving growth, and creating jobs across the UK.
On May 8, UK Prime Minister Sir Keir Starmer and U.S. President Donald Trump sealed a UK-US trade deal, setting American tariffs on UK cars at 10% for the first 100,000 vehicles exported. Before the agreement, President Trump had enforced a 27.5% tariff on UK car exports to the United States.
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