UK vehicle production fell 11.6% in July to 63,655 units, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). The decline reflects weaker exports, down 15.9% to 47,377 units, as well as earlier scheduling of routine summer maintenance shutdowns at some plants.
Car production declined 10.6% in July to 61,767 units as a 9.3% rise in output for UK buyers failed to offset a 15.8% fall in exports. Shipments to all major markets were down, including the EU (-15.2%), the US (-17.7%), Turkey (-18.5%), China (-36.9%) and Japan (-24.4%). 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, reflecting model changeovers, the closure of a plant last year, and continued trade and investment uncertainty.
UK car output remains way under pre-pandemic levels and is struggling to recover volume as it faces challenges in electrification and developing more export business to replace recently lost manufacturing capacity, according to a GlobalData analyst.
Justin Cox, an analyst at GlobalData, points out that UK car production is running way under where it was pre-pandemic. “The UK auto industry is undoubtedly struggling in overall annual volume terms,” he says.
In 2019 UK car production was 1.3 million units.
Cox also points out that the UK’s auto industry has been hit by structural changes to output by some manufacturers and some of that lost capacity will be difficult to replace. “There’s been the closure of Honda’s Swindon plant and the loss of Vauxhall (Stellantis) Astra production from the Ellesmere Port plant in northwest England. Jaguar Land Rover has also moved Discovery and Defender manufacturing from the UK to its plant in Slovakia. That’s inevitably sent the UK production base-line down.”
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.”
