UK vehicle production fell 7.5% in the first half of 2026, with factories turning out 385,979 cars and commercial vehicles, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).
Despite a challenging start to the year, however, output stabilised in the second quarter, dipping by just 128 units (-0.1%) year on year as exports strengthened and car production returned to marginal growth.
Overall vehicle production for export reached 294,222 units in the first six months, down 5.6% on the same period last year, while output for the domestic market fell more sharply, down 13.2% to 91,757 units.
In the second quarter, however, exports increased, rising by 5,075 units (+3.9%). June performance was particularly strong as car exports rose for the third consecutive month, up 4.5%, and commercial vehicle exports surged by 54.3%, albeit from a weak base last year.
Overall output in June continued to steady, following a rise in May, easing by just 1.2% to 68,200 units.
In the year to date, exports represent 76.2% of all vehicles built in Britain.
The EU remained by far the sector’s biggest customer – and supplier – taking 58.3% of car shipments, up 3.4% year on year to 166,801 units. The US was second, with 45,162 units accounting for 15.8% of exports, although volumes fell by 4.6%. China, the third biggest market, took 12,323 units, down 44.7% on H1 2025.
Model changes at several manufacturers continue to affect volumes, particularly electrified cars.
The SMMT said, once again, that EV Mandate reform is also vital. Manufacturers are investing billions in zero emission technologies, but regulation remains ahead of demand, SMMT maintains, ‘making the cost of selling in the UK untenable and undermining any case for local manufacturing investment’.
Fair EU trade is equally critical, with ‘Made in Europe’ and Rules of Origin issues arising under the TCA threatening cross-Channel trade and supply chains. Left unresolved, they threaten an €80 billion-a-year trading relationship as well as Europe and the UK’s wider automotive competitiveness, according to the SMMT.
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.”
