According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), published earlier this week, new vehicle manufacturing in the UK saw a year-on-year decline of 11.9% for the first six months of 2025.
Over 70,000 more cars and commercial vehicles were produced in the first half of 2024 than during the same period in 2025; data shows 473,583 were manufactured in the UK by the middle of last year, compared to 417,232 so far this year.
As total car manufacturing during this period dropped by 7.3%, a much more significant year-on-year reduction was recorded in the number of commercial vehicles produced.
By this time last year, 57,509 commercial vehicles were made in the UK, but so far in 2025 just 31,422 have been produced. This represents a year-on-year decline of 45.4%.
While UK car production remains heavily export focused, with exports representing 74.7% of cars manufactured in 2025, more than half of commercial vehicles produced in the UK this year have been for domestic use.
By this time last year, 68.3% of commercial vehicles manufactured in the UK were exported, but this percentage dropped to 47.1% for H1 2025.
The EU continues to be 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%).
Mike Hawes, CEO of the SMMT, commented: “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, [the UK automotive sector] can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs.”
The SMMT notes that while overall output fell from H1 2024 to H2 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 41.5% of units produced in the UK in 2025.
