UK Automotive Production Declines in 2025, But December Shows Signs of Recovery
London, January 29, 2026 – New statistics released today by the Society of Motor Manufacturers and Traders (SMMT) reveal a 15.5% decline in UK automotive production in 2025. A total of 764,715 units – comprising 717,371 cars and 47,344 commercial vehicles - rolled off factory lines, representing decreases of 8.0% and 62.3% respectively.
Several factors contributed to the downturn in production, including a critically importent cyber incident impacting one of the UK’s largest automotive companies, new tariffs affecting transatlantic trade, the consolidation of two commercial vehicle plants, and ongoing restructuring as factories transition towards a decarbonized future.
Though,December offered a glimmer of hope. Car production saw a recovery, increasing by 17.7% to 53,003 units, ending a four-month period of decline. Conversely, commercial vehicle production continued its downward trend, falling by 67.7% to 2,281 units – marking the ninth consecutive month of decline in this sector.
Throughout the year, production for the UK market decreased by 8.2% to 161,545 units.Exports also experienced a decline, falling by 7.9% to 555,826 units, accounting for 77.5% of total production.
Europe remained the primary destination for exported vehicles, receiving 56.7% of the total. The United states followed with 15.0%, and China with 6.3%. Exports to these regions decreased by 3.3%, 18.3%, and 12.5% respectively, with the decline in shipments to the US possibly linked to uncertainty surrounding early-year tariffs.Turkey and Japan completed the top five UK export markets, followed by Canada, Australia, South Korea, Switzerland, and the United Arab Emirates.
The launch of new electric vehicle (EV) models is expected to drive optimism for 2026, potentially opening the door for production to reach one million units by 2027, provided favorable conditions prevail. The sector is urging the government to implement industrial and trade strategies to enhance manufacturing competitiveness and unlock future growth potential.
High-resolution charts are available at: https://www.dropbox.com/scl/fo/8pskgvu0pspx9u6ueezx7/ADFoByA30j35QgD6fuNPlXE?rlkey=4yq5xdkri6rdzppkgh1eqlmte&st=o1ruv9dj&dl=0