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UK auto production to drop 15% in 2025, recovery expected in 2026, SMMT data shows

UNITED KINGDOM, JUL 24 – Electric vehicle production rose 1.8% to 160,107 units, making up 41.5% of UK output despite an 11.9% overall production decline amid global trade disruptions, SMMT reported.

  • Projections show UK output falling 15% this year, with a 6.4% rebound to 803,000 units next year, according to the Society of Motor Manufacturers and Traders .
  • Mike Hawes said global uncertainty and protectionism hit output, uncertainty over US tariffs forced production slowdowns, and the Luton plant closure cut van output by 45.4%.
  • EVs accounted for a record 41.5% share of UK output in H1 2025, with 76.9% headed abroad.
  • UK output fell to its weakest since 1953, Vauxhall’s Luton closure cost over 1,100 jobs, and car manufacturing still rose 6.6% in June.
  • The government's DRIVE35 strategy outlines sector support, the US-UK tariff deal on June 30 cuts rates to 10%, and the Department for Transport recently reintroduced £650 million in EV grants.
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In the first six months of the year, production decreased 11.9% to 417.232 units, relative to last year, according to the latest data published this Friday.

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SMMT broke the news in on Wednesday, July 23, 2025.
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