The Society of Motor Manufacturers and Traders said 717,371 cars and 47,344 commercial vehicles left UK factories last year
Production at Jaguar Land Rover was hit by a cyber attack in 2025 (Image: PA Archive/PA Images)
Vehicle production in the UK dropped by 15% in 2025 as the sector grappled with the most challenging year in a generation for manufacturing, according to a new report.
The Society of Motor Manufacturers and Traders (SMMT) revealed that 717,371 cars and 47,344 commercial vehicles rolled off production lines, representing decreases of 8% and 62% respectively.
Factors impacting output included a cyber attack that brought JLR production to a standstill, fresh tariffs on transatlantic trade, and continued restructuring as facilities transition towards a decarbonised future, the SMMT noted.
Throughout the year, car manufacturing for both the domestic market and exports declined by approximately 8%.
Manufacturing of battery electric, plug-in hybrid and hybrid vehicles rose by 8.3% to nearly 300,000 units, achieving a record 41.7% share of total output.
These numbers are anticipated to climb this year with the scheduled introduction of seven new EV models, the SMMT stated.
Overall car manufacturing is forecast to bounce back this year, with production expected to surge by more than 10%, the report indicated.
SMMT data revealed that Europe accounted for 56% of exported vehicles, with the US taking 15% and China securing 6.3%.
Mike Hawes, SMMT chief executive, commented: “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.”