7:14 am, August 27, 2026
UK vehicle production fell 11.6% in July as weaker export demand and planned factory shutdowns pushed output down to 63,655 units.
The latest figures from the Society of Motor Manufacturers and Traders (SMMT) show exports fell 15.9% to 47,377 units, with shipments to every major overseas market declining.
Car production dropped 10.6% to 61,767 units, despite output for the UK market increasing by 9.3%. Export production fell 15.8%.
Shipments to the EU were down 15.2%, while exports to the US fell 17.7%. Deliveries to China dropped 36.9%, with Turkey and Japan also recording double-digit declines.
Commercial vehicle production was hit even harder, falling 34.4% to 1,888 units. Output for UK customers fell 49.6%, while exports were down 18.5%.
The SMMT said the July figures were partly affected by some manufacturers bringing forward routine summer maintenance shutdowns.
There was better news for electrified vehicle production, however, with output of fully electric and hybrid cars rising 6.8% to 25,678 units.
Electrified vehicles accounted for more than four in 10 cars produced during the month, compared with around three in 10 a year earlier.
Despite the July increase, total UK vehicle production for the year so far remains down 8.1%, with just under 450,000 cars and commercial vehicles built.
The SMMT attributed the wider decline to model changeovers, the closure of a plant last year and continued uncertainty around trade and investment.
An independent forecast nevertheless expects UK car and light vehicle production to remain broadly stable at 740,000 units this year, before returning to growth in 2027.
SMMT chief executive Mike Hawes said UK manufacturers were facing ‘intense pressure’ from weaker overseas demand and global competition.
‘The rise in electrified vehicle production is encouraging, but long-term success depends on making the UK a more competitive place to make and sell vehicles,’ he said.
Hawes called for urgent reform of the government’s ZEV Mandate, alongside lower energy costs and action to protect trade with the EU.
The SMMT said UK industrial energy costs are expected to remain around 60% higher than those in Europe despite the forthcoming British Industrial Competitiveness Scheme.
It also warned that proposed EU ‘Made in the EU’ rules and tougher rules of origin requirements under the UK-EU Trade and Cooperation Agreement could put further pressure on UK manufacturers and cross-Channel supply chains.
The organisation said UK vehicle output could still reach one million units by the end of the decade, but only if the country improves its competitiveness and secures fresh investment in new models.
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