UK vehicle production stutters in first half of 2026
UK vehicle production fell 7.5% to 385,979 units in the first half of 2026, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
After a sluggish first quarter, manufacturing dropped by just 0.1% in the second quarter.
Production for export was recorded at 294,222 units in the first six months, down 5.6% on the same period last year, while output for the domestic market fell by 13.2% to 91,757 units.
The SMMT is now predicting that 740,000 units will be manufactured this year.
Pressure
Mike Hawes, SMMT chief executive, said: “Global vehicle production remains under intense pressure, and the UK is no exception. Global market weakness, trade pressures and uncompetitive costs are taking their toll.
“But decline is not inevitable. Urgent action on energy costs, reform of market regulation and improved trading arrangements with our global partners would ensure the sector can return to growth. And given that growth would be across every region in the UK, there is every reason for the new government to get behind the sector.
“At stake is an industry built on decades of investment, with automotive manufacturing alone turning over more than £85bn, adding £18bn in GVA and employing 188,000 people.
“Across the wider sector, including retail and service, maintenance and repair, automotive is worth nearly £400bn, contributes more than £75b in GVA and supports 830,000 jobs in every region of the country.
“It also underpins Britain’s global trading strength, accounting for 10% of all UK goods exports, worth almost £40bn, and £111bn in total automotive trade, while SMMT analysis identifies a further £4.6bn domestic sourcing opportunity by 2030.”
