Last year was the “toughest year in a generation” for car production with the structural changes the JLR cyber-attack that stopped production new trade barriers.
That’s the view of Society of Motor Manufacturers & Traders CEO Mike Hawes as the trade body released production figures for the year.
UK vehicle production fell -15.5% in 2025 to 764,715 units – 717,371 cars and 47,344 commercial vehicles, with output falling by -8.0% and -62.3% respectively.
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% share of output.
The SMMT said with the start of next generation volume electric car production in Sunderland, and the planned launch of seven new EV models across the UK, output is expected to grow in 2026.
It added that 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.2
Hawes said while 2025 had been tough 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.”
