NEW UK vehicle manufacturing drops for 2025 as global trade disruption and economic uncertainty reduce output.

According to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT), national manufacturing declined by -11.9% to 417,232 units in the first six months of the year.

While overall output fell for 2025, electrified car production rose by 1.8% to 160,107 units – delivering a record share of output for the first half of the year, with hybrid, plug-in hybrid and battery electric vehicles accounting for more than two in five (41.5%) units produced in the UK in 2025.

UK car production remains export-focused, with 76.9% of output headed overseas year-to-date and greater certainty now returning to key markets. The EU remains the main destination for UK car exports (54.4%), followed by the US (15.9%) China (7.5%), Turkey (4.1%) and Japan (2.7%).

The latest independent production outlook anticipates total 2025 vehicle output will fall by -15% to 755,000 units in 2025, but an expected 6.4% increase next year would take total production to 803,000 units, says SMMT.

Mike Hawes, SMMT Chief Executive, said: “Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception.

“The figures are not, therefore, unexpected but remain very disappointing. However, there are foundations for a return to growth.

“The industry is moving to the technologies that will be the future of mobility, our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an Industrial Strategy with advanced manufacturing and automotive at its core.

“With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs.”