Decline and Recovery in UK Vehicle Production: A 2025 Overview

In 2025, UK vehicle production faced significant challenges, resulting in a 15.5% decrease to 764,715 units, marking the sector's most difficult year in a generation. The Society of Motor Manufacturers and Traders (SMMT) reported that car production fell by 8% to 717,371 units, while commercial vehicle output plummeted by 62.3% to 47,344 units. Key factors contributing to this decline included a cyberattack on Jaguar Land Rover (JLR), new trade tariffs, and ongoing plant restructuring aimed at transitioning to a decarbonized future.

UK vehicle production at its ‘lowest in a generation’

The cyberattack on JLR, which halted production for six weeks, resulted in a 21.7% drop in output compared to the previous year. This incident alone cost the luxury carmaker hundreds of millions of pounds. Additionally, the introduction of new tariffs on transatlantic trade further complicated the situation, particularly affecting exports to the United States, which saw a decline of 18.3%.

UK Car Production Rises 17.7% in December

Despite the overall decline, December 2025 saw a 17.7% increase in car production, totaling 53,003 units, signaling a potential recovery. The production of battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and hybrids rose by 8.3% to 298,813 units, achieving a record 41.7% share of total output. The SMMT anticipates that the launch of seven new electric vehicle models and the start of next-generation volume electric car production in Sunderland will drive output growth in 2026, projecting an increase of over 10% to approximately 790,000 units.

UK vehicle production drops nearly 16% in toughest year in a generation, SMMT saysUK Car Production Rises 17.7% in DecemberUK vehicle production at its ‘lowest in a generation’Vehicle production fell 15% last year, report showsVehicle production in the UK falls to 73-year low

Mike Hawes, SMMT Chief Executive, emphasized the need for favorable conditions to support recovery, stating, “The key to long-term growth, however, is the creation of the right competitive conditions for investment; reduced energy costs; the avoidance of new trade barriers; and a healthy, sustainable domestic market.” The UK government has outlined its support for the sector through its Industrial and Trade strategies, with a focus on ensuring 2026 is a year of delivery.

Vehicle production fell 15% last year, report shows

Critics have pointed out that the challenges faced by the UK vehicle manufacturing sector are compounded by structural changes and the uncertainty surrounding trade agreements. The SMMT has warned that further uncertainty in cross-Atlantic trade must be avoided to ensure a stable recovery.

Vehicle production fell 15% last year, report shows

The UK vehicle manufacturing industry is navigating a complex landscape marked by significant declines in production due to cyber incidents and trade barriers. However, with strategic government support and a focus on electric vehicle production, there are signs of potential recovery on the horizon for 2026.

Vehicle production fell 15% last year, report shows