UK Car Production Falls on Weak Exports

UK car production dropped 8.2% year-on-year to 65,249 units in January 2026, driven by a 10.1% fall in exports to 51,396 units amid weaker demand in key overseas markets. The EU, US, and China remain the largest destinations for British-made vehicles. Overall UK vehicle production, including commercial vehicles, declined 13.6% to 67,415 units, with commercial output plummeting 68.6%, marking a tenth consecutive monthly fall following major plant restructuring. Mike Hawes, CEO of the SMMT, said the data “underscore the need for a forward-looking trade agenda that preserves preferential access to major markets, notably the European Union,” amid rising protectionist rhetoric, including “Made in Europe” proposals. Despite the weak start to 2026, industry forecasts still anticipate total UK car production could rebound to around 790,000 units this year, suggesting January’s decline may not signal a structural downturn.

UK car production rose 17.7% year-on-year to 53,003 units in December 2025, ending a four-month decline after a cyber incident disrupted output earlier in the year. However, total vehicle production fell 15.5% in 2025 to 764,715 units, weighed down by the cyber disruption, new transatlantic trade tariffs, plant consolidation in the commercial vehicle segment, and ongoing restructuring as the industry shifts toward decarbonization. Over the year, production for the UK market declined 8.2% to 161,545 units, while exports fell 7.9% to 555,826 units, accounting for 77.5% of output. Europe remained the main export destination (56.7%), followed by the US (15.0%) and China (6.3%). Production of battery electric, plug-in hybrid, and hybrid vehicles rose 8.3% to 298,813 units, lifting electrified models to a record 41.7% share of total output.

UK car production fell 14.3% year-on-year in November 2025 to 65,932 units, marking a fourth consecutive monthly decline, although output has been gradually normalizing following a cyber incident at the country’s largest carmaker. The downturn reflected a modest 1.7% fall in passenger car output to 63,126 units, alongside a much sharper 78% slump in commercial vehicle production, with just 2,806 units manufactured, down 9,943 units from a year earlier. Production for the UK market rose 46.9% to 14,589 units, while output for export dropped 10.6% to 48,537, as shipments to the five largest export destinations the EU, US, Türkiye, China and Japan all declined. The data capped a mixed week for the sector, with the launch of next generation, high volume electric vehicle production in Sunderland offset by concerns over the European Commission’s plans to link additional flexibility on CO2 targets and public subsidies for fleet electrification to cars and vans made in the EU.