UK vehicle manufacturing slides to 72-year low in June
By Josh White
Date: Thursday 24 Jul 2025
(Sharecast News) - UK vehicle production fell to its lowest level since 1953 in the first half of 2025, excluding the Covid-hit year of 2020, as the industry grappled with global trade disruptions, factory closures, and a lack of clarity around new electric vehicle (EV) policies.
Figures from the Society of Motor Manufacturers and Traders (SMMT) showed total output dropped 11.9% year-on-year to 417,232 units, with car production down 7.3% to 385,810 and commercial vehicle output collapsing by 45.4% to 31,422.
The downturn was driven in part by a sharp slowdown in exports to the United States, as UK manufacturers paused shipments in response to a 25% tariff imposed by the Trump administration.
Though a new UK-US trade agreement effective from 30 June slashed the tariff to 10% on up to 100,000 vehicles annually, the earlier disruption led to three straight months of export declines and a particularly steep 18.7% fall in June.
Despite the turmoil, June offered a glimmer of hope, with car output rising 6.6% from a low base the year before.
Electrified vehicle production also hit a record high for a first half, rising 1.8% to 160,107 units, and accounting for 41.5% of all cars made in the UK.
"We're seeing record EV production shares, which is a sign of strength. But the fundamentals are fragile," said SMMT chief executive Mike Hawes.
"We need certainty, capacity and competitive conditions to turn recovery into growth."
The closure of Stellantis's van plant in Luton weighed heavily on commercial vehicle figures, while slow progress on the transition from internal combustion to electric models further strained the industry.
Output remained heavily export-dependent, with 76.9% of vehicles shipped abroad.
The EU accounted for 54.4% of exports, followed by the US at 15.9%, China at 7.5%, Turkey at 4.1%, and Japan at 2.7%.
SMMT noted that the government's new £650m EV grant scheme, announced under the DRIVE35 industrial strategy, was intended to support the transition.
The scheme offers buyers up to £3,750 for EVs priced under £37,000, with eligibility based on the carbon footprint of vehicles and their batteries.
However, it said the rollout had been marred by confusion, with carmakers still awaiting details on which models qualify.
"The difficulty is, we don't know. Your dealer cannot tell you whether the model you're considering is eligible," Hawes said.
The SMMT now forecast full-year vehicle production of just 755,000 units, down from a previous estimate of 815,000.
That would mark a 15% drop from 2024 and keep output well below pre-pandemic levels.
A modest recovery of 6.4% was projected for 2026, potentially lifting annual output to 803,000, though still far short of the UK's former production peak of two million vehicles a decade ago.
Hawes described the first half of 2025 as "one of the most turbulent periods in the history of the UK automotive industry", but said the trade deal with the US and the government's industrial strategy had laid "the foundations for a return to growth".
"With rapid delivery and the right conditions, UK automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs," he added.
Reporting by Josh White for Sharecast.com.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN