Vehicle manufacturing down 11.9% in first half of 2025

Vehicle manufacturing slumped by 11.9% to 417,232 units in the first six months of the year, according to new data released by the Society of Motor Manufacturers and Traders.

Car production fell by 6.6% in June and 7.3% in the first half of the year to 385,810 units, while commercial vehicle output plummeted by 45.4% to just 31,422 units between January and June.

Against this, electric vehicle production increased by 1.8% to 160,107 units, with hybrids, plug-in hybrids and pure electrics accounting for 41.5% of all units produced.

The data found that 76.9% of output was exported, with 54.4% going to the EU and 15.9% produced for the US market.

However, with the global economy still buffeted by economic and trade uncertainty, the SMMT is predicting that vehicle output for 2025 will fall by 15% to 755,000 units before increasing by 6.4% in 2026 to 803,000 units.

Disappointing figures

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.”