UK vehicle production at its 'lowest in a generation'

The cyber-attack suffered by Jaguar Land Rover (JLR), tariffs on US imports and the closure of Vauxhall’s plant in Luton led to a significant fall in UK vehicle production volumes, last year.

UK factories produced a total of 764,715 units – 717,371 cars and 47,344 commercial vehicles, with output falling by 8% and 62.3% respectively, according to new figures published by the Society of Motor Manufacturers and Traders (SMMT).

“2025 was the toughest year in a generation for UK vehicle manufacturing,” Mike Hawes, SMMT

The closure of Vauxhall’s plant in Luton in April , resulted in a 70.6% decline in UK production, with parent company Stellantis producing just over 31,000 vans compared to more than 105,000 units in 2024 (see table below).

JLR’s cyber-attack resulted in production falling by more than a fifth (21.7%) compared to the year.

The manufacturer was making around 700 cars a day in the UK, before production was paused when its systems were hacked by organised criminals at the end of August .

JLR produced 201,283 cars in 2025, compared with 257,110 units in 2024.

Growth, however, was reported by Mini at its Oxford plant, with 124,271 cars built last year – a 12.2% increase on the 110,742 units produced the year.

Leyland Trucks also bucked the trend, reporting year-on-year growth of 6.6%, up from 14,205 units to 15,141, last year.

December saw van, truck, bus and coach volumes decline for a ninth consecutive month, falling by more than two-thirds (67.7%) to 2,281 units.

However, car production showed signs of recovery, rising 17.7% to 53,003 units and ending four months of decline.

Over the year, car production for the UK market fell by 8.2% to 161,545 units while exports declined by 7.9% to 555,826 units, accounting for 77.5% of output.

Europe received the majority (56.7%) of vehicles exported, followed by the US (15%) and China (6.3%).

Exports to each were down, by 3.3%, 18.3% and 12.5% respectively – with shipments to the US impacted by tariff uncertainty earlier in 2025 .

Turkey and Japan rounded off the UK’s top five global export markets, followed by Canada, Australia, South Korea, Switzerland and UAE.

Production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) cars rose by 8.3% to a combined 298,813 units – a record 41.7% of output.

With the start of generation volume electric car production in Sunderland, and the planned launch of seven new EV models across the UK, the SMMT expects output to grow this year.

The latest independent production outlook expects overall UK car production to return to growth with output set to rise by more than 10% to some 790,000 units in 2026.

Overall light vehicle production is anticipated to reach 824,000 units – with the potential to reach one million units by 2027, provided new model launches stay on track and the right conditions are set.

With Government’s Drive35 programme launched as part of its Modern Industrial Strategy , the SMMT says achieving the strategy's ambition of UK production reaching more than 1.3 million units per year by 2035, now depends on the delivery of the commitments ministers have made.

These include measures to drive down the UK’s stubbornly high cost of energy, ensuring the whole sector is eligible for the British Industrial Competitiveness Scheme, support for the UK supply chain, and the creation of a strong and sustainable domestic market.

Furthermore, given the crucial role of US exports – especially to small volume, high value manufacturers – the SMMT warns that further uncertainty in cross-Atlantic trade has to be avoided, while the benefits arising from new deals with South Korea and India must be realised.

Mike Hawes, SMMT chief executive, said: “2025 was the toughest year in a generation for UK vehicle manufacturing.

“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, but the outlook for 2026 is one of recovery.

“The launch of a raft of new, increasingly electric, models and an improving economic outlook in key markets augur well.

“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.

“Government has set out how it will back the sector with its Industrial and Trade strategies, and 2026 must be a year of delivery.”

In a list of the top 10 British built models for export, the Nissan Qashqai was the top performer, followed by the Mini and the Toyota Corolla.

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Gareth has more than 30 years’ experience in journalism having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in as a media advisor and has been news editor at Fleet News since 2010. Gareth oversees the news agenda for Fleet News , expertly reporting on everything from fleet electrification to important changes in tax and legislation for the sector. “Fleet decision-makers, more than ever, are under increasing pressure to adapt operations in a changing world,” says Gareth. “My job is to ensure they are equipped with the latest information and insight to do their job more efficiently and effectively. “That may be explaining how Government policy will impact their day-to-day operations or holding legislators to account on behalf of the sector.” Gareth has broken numerous exclusive stories during his time on Fleet News, helping to set the news agenda for the sector and ensure our readers know the facts.

Gareth has more than 30 years’ experience in journalism having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in as a media advisor and has been news editor at Fleet News since 2010.

Gareth oversees the news agenda for Fleet News , expertly reporting on everything from fleet electrification to important changes in tax and legislation for the sector.

“Fleet decision-makers, more than ever, are under increasing pressure to adapt operations in a changing world,” says Gareth. “My job is to ensure they are equipped with the latest information and insight to do their job more efficiently and effectively.

“That may be explaining how Government policy will impact their day-to-day operations or holding legislators to account on behalf of the sector.”

Gareth has broken numerous exclusive stories during his time on Fleet News, helping to set the news agenda for the sector and ensure our readers know the facts.