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UK Passenger and Commercial Vehicle Production Down 11.9% Year-on-Year in First Half of the Year

Gasgoo 2025-07-25 09:14:22

On July 23, data released by the Society of Motor Manufacturers and Traders (SMMT) showed that in the first half of this year, the production of new passenger cars and commercial vehicles in the UK declined by 11.9% year-on-year to 417,232 units; among them, passenger car production decreased by 7.3% year-on-year to 385,810 units; due to the restructuring of production plants, commercial vehicle production dropped sharply by 45.4% year-on-year, totaling only 31,422 units.

Image source: SMMT

Although UK passenger car production in June rose by 6.6% year-on-year to 66,317 units, ending a previous five-month decline, this was mainly due to a low production base last year caused by model updates and supply chain issues. Reportedly, UK passenger car production in June last year plummeted by 26.6% year-on-year to 62,231 units.

Against the backdrop of a decline in overall new car production in the UK, the production of electrified passenger vehicles (including pure electric vehicles, plug-in hybrid models, and hybrid models) in the first half of this year has increased by 1.8% year-on-year to 160,107 units, with a market share of 41.5%, setting a new historical high and is expected to further increase this year.

Notably, the production of passenger cars in the UK continues to be export-dominated, with 76.9% of the passenger car production in the first half of the year exported to overseas markets. The European Union remains the main destination for UK car exports, accounting for 54.4%, followed by the United States (15.9%), China (7.5%), Turkey (4.1%), and Japan (2.7%). These top five markets account for over 80% of the total UK car exports. Although UK passenger car exports have declined for the third consecutive month, the United States remains the largest single export market for the UK, highlighting the importance of the UK-US trade agreement. This agreement, which officially took effect on June 30, has reduced tariff barriers for UK cars entering the US market and is expected to be a cornerstone for future growth.

Due to the ongoing impact of trade and economic uncertainties on the global economy, the UK's new car production in 2025 is expected to decrease by 15% year-on-year to 755,000 units. However, industry analysis indicates that with adjustments in the international trade landscape, the UK's new car production in 2026 is expected to experience a 6.4% recovery growth and is projected to exceed the 800,000 mark (803,000 units).

Through the rapid implementation of new industrial strategies, including reducing energy costs, accelerating infrastructure construction, and addressing the skills gap among broader measures, the UK is expected to regain its competitive edge, re-enter the ranks of the world’s top 15 automobile manufacturing countries, and generate an additional economic benefit of £50 billion. The UK government’s automotive industry strategy, DRIVE35, has also formulated a series of measures to support the industry and its economic and environmental goals. Furthermore, with the announcement of the electric vehicle subsidy policy, the UK government will provide £650 million in financial incentives, a move expected to stimulate the domestic market and further enhance its attractiveness as a destination for industrial investment.

Mike Hawes, Chief Executive of the SMMT, said: "Global economic uncertainty and trade protectionism have impacted automobile production worldwide, and the UK is no exception. Therefore, although these figures are expected, they are still very disappointing. However, the UK automotive industry has already laid the foundation for a return to growth."

At the same time, Mike Hawes pointed out: "The UK automotive industry is transitioning towards future mobility technologies. Our outstanding engineering expertise, highly skilled workforce, and global reputation are our strengths. We also have an industrial strategy centered on advanced manufacturing and the automotive sector. As long as implementation is swift and the right conditions are in place, the UK automotive industry can reverse the current downward trend and create jobs, promote economic growth, and achieve decarbonization goals for the UK."

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UK Passenger and Commercial Vehicle Production Down 11.9% Year-on-Year in First Half of the Year

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