UK Car Production Falls 1.2% in June

Car production in the United Kingdom climbed by 6.1% year-on-year to 39,328 units in August 2026, marking the strongest growth since December 2025 and rebounding from a 10.6% fall in July. Total vehicle production rose 5.7% to 40,872 units, as domestic demand picked up, while August is typically a low-output and volatile month due to scheduled plant shutdowns. Car exports to Australia, Japan and the US recorded the biggest gains among the top 10 markets, but shipments to the European Union fell 7.4% and those to China dropped 15%. The EU remained the UK’s largest overseas market, accounting for 54.1% of car exports. The SMMT said investments of more than £1 billion from McLaren, Nissan and Bentley support the sector’s long-term prospects. However, it warned that the EU’s proposed “Made in Europe” provisions pose an existential threat to UK production, given the deep integration between British and EU auto industries.

UK car production fell 10.6% year-on-year to 61,767 units in July 2026, following a 1.3% decline in June, driven by weaker export demand and earlier scheduling of routine summer maintenance shutdowns. Car exports declined 16%, with shipments to the European Union falling 15%, while exports to the United States, Turkey, China and Japan dropped 18%, 19%, 37% and 24%, respectively. The decline in overseas demand more than offset a rise in vehicles produced for the domestic market. Commercial vehicle production also fell sharply, dropping 34% to 1,888 units. Meanwhile, production of fully electric and hybrid models increased 6.8% to 25,678 units, marking the first monthly increase of the year and accounting for more than four in 10 cars built. The SMMT said UK factories have produced just under 450,000 cars and commercial vehicles so far this year, while annual output could reach 1 million units by the end of the decade if manufacturers secure fresh investment and improve competitiveness.

UK car production dropped 1.2% year-on-year to 68,200 units in June 2026, reversing a 3.2% rise in May. The decline came even as domestic production plunged 17.5% yoy, though car exports rose 4.5%. For H1 of the year, car production fell 7.5% yoy to 385,979 units amid trade uncertainty, with exports dropping 5.6% to 294,222 units. Meanwhile, domestic production shed 13.2% to 91,757 units. "Clearly, vehicle production is still under severe pressure, but the last quarter suggests at least a sign of stabilization," said SMMT CEO Mike Hawes. Exports accounted for 76.2% of all vehicles built, underscoring the sector's dependence on international trade. Among key export markets, the United States was the second-largest market, accounting for 15.8% of exports, despite volumes dropping 4.6% to 45,162 units. Exports to China, the third-largest market, plunged 44.7% to 12,323 units. Meanwhile, exports to the EU, the largest market, rose 3.4% to 166,801 units, accounting for 58.3% of exports.