UK vehicle production declined by 13.6% in January, with factories turning out 67,415 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
This total included 65,249 cars and 2,166 commercial vehicles (CVs). Car output fell by 8.2% year-on-year, while CV production dropped sharply by 68.6% – marking its tenth consecutive monthly decline – largely reflecting the impact of a major plant restructuring.
The downturn was primarily driven by weaker export performance. Shipments of cars fell by 10.1%, while CV exports declined by 75.0% amid softer demand in key global markets.
Despite this, overseas buyers still accounted for the majority of UK vehicle production at 77.8%. The EU remained the largest destination, receiving 62.5% of car exports and 94.0% of CV shipments.
The US continued as the second-largest importer of UK-built cars with a 14.1% share, followed by Japan (2.7%), China (2.5%), and Turkey (2.4%).
Encouragingly, car exports to the EU rose by 7.8%, underlining the importance of strong trading relationships with the UK’s closest market, even as shipments to other top destinations declined.
Domestic performance was more stable, down just 0.6% to 13,880 units, while CV production for the home market fell by 58.4%.
Electrified vehicle output – including battery electric (BEV), plug-in hybrid (PHEV), and hybrid (HEV) models – declined by 10.6% to 26,854 units, though these still represented a significant 41.2% share of total car production.
Looking ahead, the SMMT noted that there are signs for optimism. Production volumes are expected to grow as next-generation EV manufacturing ramps up in Sunderland, alongside the launch of seven new electric models across the UK this year.
Independent forecasts suggest overall car production could rise by more than 10% to around 790,000 units in 2026. Combined car and light CV output is projected to reach 824,000 units, with the potential to approach one million by 2027provided new model launches stay on track and supportive economic conditions are in place.
The SMMT warned that progress will depend on stable global trading relationships, particularly with the EU and US, alongside effective delivery of the government’s Industrial and Trade Strategies to strengthen competitiveness and unlock future growth in UK automotive manufacturing.
Mike Hawes, SMMT chief executive said: “Weak exports to markets beyond Europe amid soft demand delivered a disappointing start to the year for UK vehicle manufacturing. It reinforces the need for a forward-looking trade agenda that secures existing preferential access – notably with the biggest market on our doorstep given protectionist ‘Made in Europe’ proposals – and builds new ones with markets worldwide.
“That must be combined with more competitive conditions for UK manufacturing – lower energy costs, a strong and sustainable domestic market, and specific support for our supply chain.”
