UK car manufacturing hits lowest point in 72 years

The output of UK vehicle manufacturing has reached its “nadir” after posting the worst start to a regular year since 1953. Only in the Covid year of 2020 were fewer vehicles produced than the 417,232 in the first half of 2025, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Speaking at a briefing to announce the figures, SMMT chief executive Mike Hawes said factors such as tariffs from the key export market of the US, the closure of Stellantis’s Luton van factory and changeovers for crucial UK-made models meant that “the general view is that this is the real bottom of where we should be”. He added: “This has been one of the most turbulent periods in the history of the UK automotive industry. It [this year] hasn’t been as bad as Covid, but it’s the worst first half of a year since 1953.” UK vehicle production in the first six months of 2025 was 11.9% lower than in the same period in 2024 and the full year forecast now stands at 755,000 units, a 15% drop on last year. Production is expected to increase 6.4% next year to 803,000 units, although this is only around half of the UK’s peak output in modern times from a decade ago. As part of its new industrial strategy, the government is targeting 1.3 million vehicles to be built in the UK by 2035. Hawes said he could see a path back to 1m units based on brands manufacturing in the UK already but to get to 1.3m the UK would “need one, if not two new entrants” to build vehicles here. These new entrants will most likely come from China, said Hawes, and he welcomed the government’s new industrial strategy as making the UK a more attractive place for new entrants to invest, particularly around confronting energy costs. Tariffs on exports from the UK to the US have been resolved with an agreement that has brought a 27.5% tariff down to 10%, subject to a 100,000-vehicle quota that works for the UK based on present export volumes. Hawes said the likes of the industrial strategy and the US trade deal were signs that this government will back the automotive industry. However, this does not mask the bleak numbers for UK automotive production so far this year. Car output declined 7.3% year on year to 385,810 units but van production fared far worse with Luton’s closure, dropping 45.4% to just 31,422 units. Just over 40% of UK production is of electrified models. More than three-quarters of UK vehicle production is exported and almost 55% of those exports go to the European Union. The US gets 15.9% of UK exports, China 7.5%, Turkey 4.1% and Japan 2.7%. Several UK factories paused production in the spring off the back of the US tariffs but production returned to growth in June, rising 6.6% on a year earlier.

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UK car manufacturing hits lowest point in 72 years

Excluding Covid-hit 2020, the first half of 2025 was the worst for UK car factories since 1953

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UK car manufacturing hits lowest point in 72 years

Excluding Covid-hit 2020, the first half of 2025 was the worst for UK car factories since 1953

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Top manufacturers

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About Autocar