Car and van production in the UK declined last month because of weaker exports as well as routine summer shutdowns at some plants. Vehicle production fell 11.6% year on year in July to 63,655 units, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). The decline reflects weaker exports, down 15.9% to 47,377 vehicles, as well as earlier scheduling of routine summer maintenance shutdowns at some plants, the industry body said.
Car production declined 10.6% to 61,767 units, as a 9.3% rise in output for UK buyers failed to offset a 15.8% fall in exports. Shipments to all major markets were down, including the EU (-15.2%), the US (-17.7%), Turkey (-18.5%), China (-36.9%) and Japan (-24.4%). Commercial vehicle output also fell sharply, down 34.4% to 1,888 units, with deliveries to UK customers and export markets down 49.6% and 18.5% respectively.
Electrified cars were a bright spot, with output of fully electric and hybrid models recording the first monthly increase of the year, up 6.8% to 25,678 units. Electrified models accounted for more than four in 10 cars built in July, up from around three in 10 a year ago. So far this year, UK factories have turned out just under 450,000 cars and commcercial vehicles, down 8.1% on the same period in 2025, reflecting model changeovers, the closure of a plant last year, and trade and investment uncertainty.
Even so, the latest independent forecast expects UK car and light vehicle output to remain broadly stable this year, at 740,000 units, before growth resumes in 2027. Output could still reach one million units by the turn of the decade, but only if the UK addresses its competitiveness and secures fresh model investment. The SMMT has welcomed the government’s recently launched review of its ZEV (zero emission vehicle) mandate, as it hopes for “meaningful reforms” to the regulation that would help reduce the high cost of selling EVs in the UK.
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