UK car vehicle production falls amid global economic and trade uncertainty
British car output fell 7.3% in the first six months of the year, while van and other commercial vehicle production plummeted by 45.4%, according to data from the Society of Motor Manufacturers and Traders (SMMT).
According to the organisation, production was slowed or halted by some manufacturers due to uncertainty around the global economy and earlier threats of US tariffs.
However, the SMMT said a new trade deal struck between Prime Minister Sir Keir Starmer and US President Donald Trump would become a 'basis for future growth'.
SMMT chief executive Mike Hawes said the numbers were 'very disappointing'.
'Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception,' he said.
'The figures are not, therefore, unexpected but remain very disappointing. However, there are foundations for a return to growth.'
While overall car production declined, the number of electric cars made in the UK rose by 1.8%, with EVs now making up a record 41.5% of all cars produced in the UK in the first half of 2025.
'The industry is moving to the technologies that will be the future of mobility, our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an Industrial Strategy with advanced manufacturing and automotive at its core,' Mr Hawes said.
'With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs.'
Grants for new electric cars are being reintroduced after being scrapped in June 2022, the Department for Transport (DfT) announced recently.
Drivers will be able to reduce the purchase cost of a new electric car by up to £3,750.
Officials hope the measure – restricted to vehicles priced at up to £37,000 – will encourage more drivers to switch to electric motoring.
The DfT said 33 new electric car models are available for less than £30,000.
The Government has pledged to ban the sale of new fully petrol or diesel cars and vans from 2030.
Transport Secretary Heidi Alexander said: 'This EV grant will not only allow people to keep more of their hard-earned money – it'll help our automotive sector seize one of the biggest opportunities of the 21st century.'
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