UK car production plunges amid wider uncertainty

There were 417,232 new vehicles made in the UK between January and June 2025; excluding the Covid lockdown era, that’s the fewest cars and vans produced here in a half-year period since 1953. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, called the results “depressing”. 

The causes, admittedly, were all foreseeable. Van numbers were down because Vauxhall closed its Luton factory; tariffs have been reduced with the US, but are still in place – see JLR’s recent redundancy announcement for further proof of the wider impact of the stalling effect. Add that to the general uncertainty around the new car market right now, particularly when it comes to electric car subsidies, and it’s easy to see why numbers are down. 

For the six months from January to the end of June 2025, there were 385,810 cars built in Britain, with 76.9 per cent of those for export (the US still being the biggest market, with more than half going there). While for the same period in 2024 that percentage was 74.5 per cent, it was of a higher overall number (416,074), meaning 309,917 going overseas against 296,708 this year. Vans has taken the really big hit, though, down 45.4 per cent year-on-year from 57,509 to 31,422. 

It’s not all bad news, however. June 2025 was up on June 2024 by 6.6 per cent, at 66,317 cars against 62,331, although that month last year was an especially poor one – down 26.6 per cent on June ‘23 because of model year updates and supply chain problems. The share of electrified cars (encompassing hybrid, PHEV and EV) was at its highest point ever, and that will surely be expected to climb with the announcement of the latest Electric Car Grant. 

For the year, it’s estimated that overall UK vehicle output will drop around 15 per cent to 755,000 units; for 2026, a modest increase of six per cent is forecast, which would tip us over 800,000 cars. Some way off the million units made in 2021.

Mike Hawes added: “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. 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.”