UK Car Production Drops 10.7% in February

UK car production dropped 10.7% year-on-year to 65,885 units in February 2026, deepening from an 8.2% decline in January, as model changeovers and soft global demand weighed on output. Car exports fell 11.5% to 53,140 units, with overseas shipments still accounting for the bulk of production. The EU remained the largest destination, taking 63.6% of exports, with volumes to the bloc rising 5.3%, partly offsetting sharp declines to the US (-34.3%), China (-66.4%), and Japan (-6.8%). Domestic demand also weakened, with car output for the UK market down 7.5% to 12,745 units. Meanwhile, production of electrified vehicles (BEV, PHEV, and HEV) went down 2.8% to 26,629 units, although their share of total car output increased to 40.4%, signaling a continued shift toward low-emission vehicles despite the broader downturn.

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.