UK Vehicle Production Drops Nearly 16% in Toughest Year in a Generation, SMMT Says

British vehicle production tumbled in 2025 after a cyberattack at the country's largest automaker, new trade tariffs and plant restructuring weighed on output in what was described as the sector's toughest year in a generation.

Total vehicle production dropped 15.5 per cent to 764,715 units last year, according to data from the Society of Motor Manufacturers and Traders on Thursday.

While car production declined 8 per cent to 717,371 units, commercial vehicle output plunged 62.3 per cent to 47,344 units.

Tata Motors-owned JLR halted production at its UK plants for six weeks following a September cyberattack, which cost the British luxury carmaker hundreds of millions of pounds. The company resumed production in October.

"2025 was the toughest year in a generation for UK vehicle manufacturing," SMMT Chief Executive Mike Hawes said, adding that recovery prospects hinge on "reduced energy costs, avoidance of new trade barriers and a healthy, sustainable domestic market".

There, however, were signs of improvement at the year-end, with December car production rising 17.7 per cent, snapping four months of decline, SMMT said. Production of battery electric vehicles, plug-in hybrid and hybrid cars rose 8.3 per cent to a total of 298,813 units in 2025, a record 41.7 per cent share of total output, signalling progress in the industry's electric transition.

SMMT expects the start of next-generation volume electric car production in Sunderland and the planned launch of seven new EV models across the UK to drive up the output in 2026, with car production seen rising more than 10 per cent to about 790,000 units.

Light vehicle production is expected to surpass 1 million units by 2027, if new model launches stay on track.

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