On July 23, data released by the British Automobile Manufacturers and Traders Association (SMMT) showed that in the first half of this year, new passenger cars and commercial vehicles in the UKyielddecreased by 11.9% year-on-year to 417,232 units; Passenger car production decreased 7.3% y/y to 385,810 units; Commercial vehicle production fell 45.4% y/y to 31,422 units due to the restructuring of production plants.
Image source: SMMT
Although UK passenger car production rose 6.6% year-on-year to 66,317 units in June, ending a five-month downward trend, this was mainly due to a low production base in the same period last year due to model updates and supply chain issues. It is reported that the UK’s passenger car production in June last year fell 26.6% year-on-year to 62,231 units.
Against the backdrop of the decline in overall new car production in the UK, the first half of this yearelectrificationProduction of passenger cars (including pure electric models, plug-in hybrid models, and hybrid models) bucked the trend by 1.8% y/y to 160,107 units, with a market share of 41.5%, a record high, and is expected to increase further this year.
It is worth noting that British passenger car production is still dominated by exports, with 76.9% of passenger car production sold to overseas markets in the first half of this year. The EU 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%), which account for more than 80% of UK car exports. Despite a third consecutive month of decline in UK passenger car exports, the US maintains its position as the UK’s largest single export market, highlighting the importance of the UK-US trade agreement. The agreement, which officially entered force on June 30, lowers the tariff threshold for British cars to enter the US market and is expected to be the cornerstone of future growth.
As the global economy continues to be hit by economic and trade uncertainties, the UK’s new car production in 2025 is expected to decline by 15% year-on-year to 755,000 units. However, industry analysts pointed out that with the adjustment of the international trade pattern, the UK’s new car production is expected to usher in a recovery growth of 6.4% in 2026, and is expected to exceed the 800,000 mark (803,000 units).
By rapidly implementing new industrial strategies, including broader measures such as reducing energy costs, accelerating infrastructure construction and filling skills gaps, the UK is poised to regain its competitive advantage, return to the top 15 car manufacturers in the world, and bring an additional £50 billion in economic benefits. The UK government’s Automotive Industry Strategy DRIVE35 also sets out a series of measures to support the industry and its economic and environmental goals. In addition, withElectric vehicleThe announcement of the subsidy policy, the UK government will provide 650 million pounds of financial incentives, a move that is expected to activate the UK home market and further enhance its attractiveness as an industrial investment destination.
Mike Hawes, CEO of SMMT, said: “Global economic uncertainty and protectionism have taken a toll on global car production, and the UK is no exception. Therefore, these figures, although expected, are very disappointing. However, the UK automotive industry has laid the foundation for a resumption of growth. ”
At the same time, Mike Hawes pointed out: “The UK automotive industry is transforming into the mobility technology of the future, and our engineering excellence, highly qualified workforce and global reputation are our strengths, and we also have an industrial strategy with advanced manufacturing and automotive at our core. With quick implementation and the right conditions, the UK automotive industry can reverse the current downward trend and create jobs, boost UK economic growth and achieve decarbonisation goals. “