Automotive outlook remains positive – SMMT
The Society of Motor Manufacturers and Traders has insisted the automotive outlook remains positive despite low production figures.
It reported that output fell 13.6% in January, with car production down 8.2% and commercial vehicle production dropping 68.6%.
Further, production of electrified vehicles declined by 10.2% during the month.
However, SMMT CEO said that while these figures highlight a very real challenge facing the sector, there is cause of optimism in the medium term.
Pressing challenges
He said: “January’s production figures outline the pressing challenges faced by UK vehicle manufacturing in 2026. Weaker export demand beyond Europe, and a sharp contraction in commercial vehicle production following major restructuring, have all impacted output.
“Encouragingly, the medium-term outlook remains positive. While production of electrified vehicles fell 10.2%, they still accounted for two in five vehicles rolling off factory lines last month, and volumes are expected to rise as next generation EV manufacturing ramps up in Sunderland. This development is also supported by a wave of new model launches planned for the year ahead.
“Turning this potential into sustained growth will require globally competitive conditions for automotive manufacturing, including affordable energy, strong domestic demand and targeted support for the supply chain, which must be backed by the swift and effective delivery of government industrial and trade strategies.”
