UK vehicle production remains in decline

UK car and van production has declined by 12% in the first half of the year, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

It's the worst performance, outside of the Covid pandemic, since 1953.

A total of 417,232 new vehicles were built in the UK, in the first six months of 2025. Car production fell by 7.3%, while commerical vehicle production was down by 45.4%.

The latter was affected by Stellantis' decision to close its Vauxhall plant in Luton.

Mike Hawes, SMMT chief executive, said: “Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception. The figures are not, therefore, unexpected but remain very disappointing. However, there are foundations for a return to growth."

In June, manufacturing increased by 6.6% but the SMMT predicts that by the end of 2025 manufacturing will be down by 15% year-on-year.

UK car production remains export-focused, with 76.9% of output headed overseas year-to-date and greater certainty now returning to key markets.

The EU remains the main destination for UK car exports (54.4% share), followed by the US (15.9%) China (7.5%), Turkey (4.1%) and Japan (2.7%), with these five destinations alone accounting for more than eight in 10 overseas sales.

Despite three straight months of declining export volumes culminating in an 18.7% drop in June, the US maintained its position as the UK’s biggest single export market underscoring the importance of the UK-US trade deal. That deal, which came into force on 30 June, gives the UK reduced tariff rates into the US automotive market, which can become a basis for future growth.

Hawes added: "The industry is moving to the technologies that will be the future of mobility, our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an Industrial Strategy with advanced manufacturing and automotive at its core. With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs."