NAA Update: Increase in UK vehicle production, calls for review of the ZEV Mandate
Vehicle production rose in May for the first time this year, supported by stronger exports and the implementation of the UK-US trade deal, however concerns remain over stricter rules of origin requirements and potential “Made in Europe” policies, and the industry is also calling for an urgent review of the ZEV Mandate.
Welcome to this month’s newsletter, and I hope you are all keeping well.
I want to start with some good news that the UK automotive sector has reasons for cautious optimism. Vehicle production rose in May for the first time this year, supported by stronger exports and the implementation of the UK-US trade deal, which has helped drive a significant increase in shipments to the American market. While Brexit introduced new challenges and costs, the UK and EU have maintained strong trading relationships through the Trade and Cooperation Agreement, with the EU continuing to account for more than half of UK car exports.
The rapid growth in UK-EU electric vehicle trade demonstrates the potential for continued collaboration and mutual economic benefit. Although concerns remain over stricter rules of origin requirements and potential “Made in Europe” policies, ongoing dialogue between the UK and EU provides an opportunity to find practical solutions that support competitiveness and investment.
Closer to home, the industry is also calling for a realistic approach to EV market targets, through an urgent review of the ZEV Mandate. By balancing environmental ambitions with market conditions, policymakers can help secure future production, attract investment and protect jobs. With supportive trade policies and pragmatic regulation, the UK automotive industry is well positioned to achieve sustainable long-term growth.
Moving on to the membership side, we would like to welcome two returning members:
DHL – Automotive businesses of all shapes and sizes use DHL to deliver their products ranging from nuts and bolts to finished vehicles, to over 220 countries and territories worldwide. From navigating increasingly complex supply chains, to the intricacies of customs duties and taxes, DHL offers support at every stage of the export and import journeys.
NGF Europe Limited – a UK-based company specialising in the production of glass cord and related materials, primarily used in the automotive and industrial sectors. The company is part of Nippon Sheet Glass Group (NSG Group), a global leader in glass and glazing solutions. NGF Europe primarily focuses on producing glass cords, which are key components in engine timing belts. These belts are critical in vehicle engines, allowing precise coordination between the camshaft and crankshaft.
We will be hearing more from these members in the coming months.
Finally, there are just two days remaining to enter the NAA Business Awards.
The closing date for award entry is 10 July. Full details can be found on our website.
Paul Jones
NAA CEO
