UK car production is half what it was a decade ago following “toughest year in a generation”

Car production in the UK fell by eight per cent last year, meaning 2025 saw roughly half the number of vehicles built here compared with a decade ago.

Data released by the Society of Motor Manufacturers and Traders (SMMT) shows that 717,371 cars and 47,344 commercial vehicles were manufactured in British factories in 2025. That’s down from 779,584 and 125,649 the year before – and roughly 52 per cent less than in 2015.

The SMMT’s chief executive, Mike Hawes, described 2025 as “the toughest year in a generation for UK vehicle manufacturing”.

Full-electric and hybrid cars now account for two-in-five new vehicles built in the UK, with three-quarters of all models produced being exported around the globe – primarily to places such as mainland Europe, China and the U.S. It’s perhaps no surprise that the most popular exported car was the Nissan Qashqai, followed by the MINI Cooper and Toyota Corolla – three vehicles that are all available with some great deals on Auto Express Marketplace.

Regardless, these figures will certainly be sober reading for many, so you may ask: why were things so dire?

Hawes explained: “Structural changes, new trade barriers, and a cyber attack that stopped production at one of the UK’s most important manufacturers combined to constrain output.” 

Following disagreements over the controversial ZEV Mandate, Vauxhall made the move to close its historic factory in Luton, which will likely have contributed to a dip in commercial vehicle production.

However, unquestionably the hardest-hit firm last year was Jaguar Land Rover (JLR). The British automotive conglomerate not only had to cope with the hibernation of the Jaguar brand prior to its ultra-luxury reinvention, but also heavy tariffs imposed by US President Donald Trump, which pushed up the prices of the maker’s already-premium products.

That’s not to mention the cyber attack in August, which saw the Coventry-based firm’s production grind to a halt for over five weeks before a phased restart. Experts believe the whole debacle cost JLR almost £500 million, making it the most costly cyber attack in UK history.

There is some hope, though – for both JLR, as well as the wider UK car industry. Joining Prime Minister Keir Starmer on a trip to Beijing, executives at JLR are hoping to secure a deal with Chinese giant Chery, which would see it produce cars in the UK utilising spare production capacity. Such a move would boost factory efficiency at JLR, securing jobs and providing a flow of additional revenue.

In addition, the start of production of the revived Nissan Leaf should provide the Japanese maker’s Sunderland plant with yet another best-seller besides the aforementioned Qashqai. All of this and more is expected to see manufacturing rise by 10 per cent over the course of 2026 to 790,000 units, and potentially to over a million the year after.

“The launch of a raft of new, increasingly electric, models and an improving economic outlook in key markets augur well,” said Hawes. “The key to long-term growth, however, is the creation of the right competitive conditions for investment: reduced energy costs, the avoidance of new trade barriers, and a healthy, sustainable domestic market.”

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