UK vehicle production at lowest level since Queen Elizabeth II came to throne

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UK vehicle production has plummeted to its lowest level since 1952, marking a 15.5% decline from the previous year.

The decline was driven by a perfect storm of structural changes and unexpected crises. A major factor was a massive cyberattack on Jaguar Land Rover in September, which paralyzed the computer networks of Britain’s largest automotive employer. The attack forced factories to sit idle for over a month, causing a production backlog that took months to resolve.

Restructuring across the industry further hampered volumes. The closure of Vauxhall’s historic Luton plant in March led to a 62% crash in commercial vehicle production. Additionally, major players such as Nissan and JLR temporarily halted output of ageing models to retool their facilities for a decarbonized future.

International trade barriers have also taken a heavy toll on an industry where 78% of cars are destined for export. Sales to the United States were dampened by new 10% tariffs, while “increasingly protectionist” proposals from the European Union threaten future access to the UK’s largest export market. High energy costs also continue to make the UK a more expensive place to build cars compared to international rivals.

Despite the gloomy headlines, there are significant positives within the data. Production of electric and hybrid vehicles rose by 8.3% last year, accounting for a record 41.7% of total output. The successful launch of the new electric Nissan Leaf in Sunderland and seven upcoming EV models from other manufacturers offer a clear pathway to recovery.

The SMMT remains “optimistic but realistic” about the future, predicting that production will return to growth in 2026. Experts believe that if the government delivers on its Modern Industrial Strategy – driving down energy costs and securing tariff-free trade – UK production could exceed one million units by 2027.

Says SMMT Chief Executive Mike Hawes:

 “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.”

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