12:53 pm, July 24, 2025
Production of new cars and vans has fallen by almost 12 per cent in the first half of 2025, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
A total of 417,232 new cars and vans were made in Britain between January and June, with van production down by 45.4 per cent following the closure of the Stellantis van factory in Luton, Beds. Car production was down by 7.3 per cent.
While overall output fell, electrified car production rose by 1.8% to 160,107 units – delivering a record share of output for the first half of the year, with hybrid, plug-in hybrid and battery electric vehicles now accounting for 41.5 per cent of cars produced in the UK in 2025.
Of the cars made here, over three quarters (76.9 per cent) are exported, of which over half go to Europe. But the single biggest market remains the USA, despite the threat of tariffs, accounting for 15.9 per cent of car exports.
The UK-US trade deal, which came into force on 30 June, gives the UK reduced tariff rates into the US automotive market, which should see growth return, although economic headwinds remain.
Furthermore, with the announcement of the Electric Car Grant, which provides £650 million of fiscal incentives for EVs, there is the potential to energise the domestic market, claims the SMMT.
