UK vehicle production suffers double-digit decline
UK vehicle production fell 11.6% in July to 63,655 units, according to new figures from Society of Motor Manufacturers and Traders (SMMT).
Car production was down 10.6% to 61,767 units as a 9.3% rise in output for UK buyers failed to offset a 15.8% fall in exports.
Commercial vehicle output also fell sharply, down 34.4% to 1,888 units, with deliveries to UK customers and export markets down 49.6% and 18.5% respectively.
There was more positive news for electrified car production, with output of fully electric and hybrid models recording the first monthly increase of the year, up 6.8% to 25,678 units. Electrified models accounted for more than four in 10 cars built in July, up from around three in 10 a year ago.
Year to date, UK factories have turned out just under 450,000 cars and CVs, down 8.1% on the same period in 2025, with the latest independent forecast expecting UK car and light vehicle output to remain broadly stable in 2026, at 740,000 units, before growth resumes in 2027.
Mike Hawes, SMMT chief executive, said: “July’s figures underline the intense pressure under which UK vehicle manufacturers are currently operating. Although the negative performance is exacerbated by shutdown calendarisation and model changeovers, it is being compounded by weaker overseas demand and fierce global competition.
“The rise in electrified vehicle production is encouraging, but long-term success depends on making the UK a more competitive place to make and sell vehicles. Meaningful and urgent reform of the ZEV Mandate, reduction of the UK’s sky-high energy costs and negotiations to safeguard free and fair trade with our largest and closest export market are essential to put UK automotive manufacturing back on a path to growth.”
