Making “the most difficult year in a lifetime,” UK vehicle manufacturing has dropped to half its volume from ten years ago.
Tariffs, cyberattacks, and modifications in manufacturing lines cause an eight percent annual drop in manufacturing, according to the UK trade group.
Last year, British car manufacturing decreased by eight percent, therefore around half the amount of cars made here in 2025 as compared to a decade ago.
Concurring to Society of Engine Producers and Dealers (SMMT) figures, British manufacturing plants made 47,344 commercial vehicles and 717,371 automobiles in 2025. That’s down from 779,584 and 125,649 the year some time recently and generally 52 per cent less than in 2015.
According to Mike Hawes, Chief Executive of the SMMT, 2025 will be “the toughest year in a generation for UK vehicle manufacturing”.
With three-quarters of all models manufactured being exported throughout the world mostly to nations like mainland Europe, China, and the U.S., full-electric and hybrid cars now make up two-in-five new vehicles created in the UK. Unsurprisingly, the Nissan Qashqai was the most sought-after exported car followed by the MINI Cooper and Toyota Corolla—three vehicles all available with some fantastic prices on Auto Express Marketplace.
Still, for many, these figures would certainly be somber reading, therefore you may wonder: why were things so terrible?
Hawes stated: “Combined to limit production were structural changes, new trade obstacles, and a cyber attack halting manufacturing at one of the most significant UK producers.
Following arguments about the contentious ZEV Mandate, Vauxhall decided to shutter its venerable factory in Luton, which will probably have helped to drop commercial vehicle output.
But Jaguar Land Rover (JLR) was clearly the company most affected last year. In addition to dealing with the hibernation of the Jaguar brand before its ultra-luxury reinvention, the British automotive conglomerate also had to handle high tariffs enacted by US President Donald Trump, which increased the pricing of the maker’s already-premium goods.
Not forgetting the cyber assault in August, which brought production at the Coventry-based business to a halt for more than five weeks before a phased reestablishment. Experts estimate the whole debacle cost JLR almost £500 million, making it the most expensive cyber assault ever in the United Kingdom.
Though there is some hope—for both JLR as well as the larger UK car sector. Executives at JLR are traveling to Beijing with Prime Minister Keir Starmer in the hopes of striking an agreement with Chinese behemoth Chery, therefore allowing for UK manufacturing of vehicles using extra capacity. Such a decision would improve JLR’s factory efficiency, so protecting jobs and generating extra income flow.
Furthermore, the beginning of manufacture of the resurrected Nissan Leaf should offer the Japanese manufacturer’s Sunderland facility yet another best-seller next to the previously mentioned Qashqai. Ten percent growth in manufacturing, from 790,000 units throughout 2026 and perhaps over a million the year following, is expected for all of this and more.
Hawes remarked that “the launch of a slew of new, ever more electric, models and an advancing economic forecast in important markets bode nicely.” “However, long-term growth depends on the establishment of the suitable competitive environment for investment: lower energy prices, avoidance of new trade restrictions, and a robust, sustainable local market.”
Pioneers in the industry demand, in spite of challenges, that the UK has solid basics required to resuscitate its car fabricating segment. A competent workforce, well-developed calculated frameworks, and developing center on electric car improvements advantage the nation. Modifying believe and boosting competitiveness would depend on government help, vital ventures, and unions with remote producers. The British vehicle segment may recapture its step if decision-makers address issues with exchange consistency, vitality costs, and framework improvements—notably in connection to EV charging stations and battery fabricate. In spite of the fact that 2025 marks a outstanding nadir, the taking after a long time give an opportunity for revival, change, and ecologically neighborly extension for British car fabricating.
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