UK automotive manufacturing slumped by 15.5 per cent in 2025 as business confronted ‘worst yr in a technology’

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Your help makes all of the distinction. Learn extra The British motor business suffered “its worst yr in a technology” in 2025 with the variety of autos constructed down by 15.5 per cent, in response to a brand new report.

Some 764,715 vehicles and industrial autos left factories final yr in what Mike Hawes, the chief government of the society of motor producers and merchants (SMMT), referred to as a “robust” yr.

The sharp fall has been attributed to some well-publicised main blows to the sector, together with the closure of the Stellantis Vauxhall van manufacturing unit in Luton, the cyber assault on Jaguar Land Rover (JLR), tariffs imposed by the US, and preparations for transitioning to manufacturing of recent EV fashions.

<img src="https://static.independent.co.uk/2025/10/08/19/afaa3f202fabf9ccaf7b7d7c9272307fY29udGVudHNlYXJjaGFwaSwxNzYwMDMxMDkx-2.81931353.jpg" srcset="https://static.independent.co.uk/2025/10/08/19/afaa3f202fabf9ccaf7b7d7c9272307fY29udGVudHNlYXJjaGFwaSwxNzYwMDMxMDkx-2.81931353.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/10/08/19/afaa3f202fabf9ccaf7b7d7c9272307fY29udGVudHNlYXJjaGFwaSwxNzYwMDMxMDkx-2.81931353.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The Jaguar Land Rover cyber-attack forced the firm to halt production for several weeks" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The Jaguar Land Rover cyber-attack compelled the agency to halt manufacturing for a number of weeks (PA) The dismal efficiency was so unhealthy it even depressed the UK’s GDP figures, and the federal government spent £1.5bn on supporting the JLR provide chain with the intention to defend hundreds of jobs.

Europe obtained the bulk (56.7 per cent) of autos exported, adopted by the US (15 per cent) and China (6.3 per cent). Exports to every fell, with shipments to the US affected by tariff uncertainty earlier final yr. Turkey and Japan rounded off the UK’s prime 5 international export markets, adopted by Canada, Australia, South Korea, Switzerland and UAE.

Regardless of the gloom, automotive manufacturing picked up in the direction of the tip of the yr as work returned to regular at JLR, and the brand new technology electrical Nissan Leaf began to roll off the strains in Sunderland.

Mr Hawes stated he was “optimistic” and unbiased forecasters see the business recovering in 2026, with whole automobile manufacturing shifting as much as round 824,000 items. New electrified vehicles from Jaguar and an electrical Nissan Leaf will probably be notable contributors to this enchancment.

Manufacturing of battery electrical (BEV), plug-in hybrid (PHEV) and hybrid (HEV) vehicles rose by 8.3 per cent to a mixed 298,813 items – a document 41.7 per cent share of output.

<img src="https://static.independent.co.uk/2025/12/16/17/08/IMG_3867.jpeg" srcset="https://static.independent.co.uk/2025/12/16/17/08/IMG_3867.jpeg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/12/16/17/08/IMG_3867.jpeg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The electric Nissan Leaf, which will be produced at the carmaker’s factory in Sunderland, is expected to contribute to an improved year for the industry in 2026" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The electrical Nissan Leaf, which will probably be produced on the carmaker’s manufacturing unit in Sunderland, is anticipated to contribute to an improved yr for the business in 2026 (Provided) With the beginning of subsequent technology quantity electrical automotive manufacturing in Sunderland, and the deliberate launch of seven new EV fashions throughout the UK, output is anticipated to develop in 2026.

In a temper of optimism, Mr Hawes sees a “pathway” for automobile manufacturing reaching a million within the coming years, with 1.3 million a risk of a brand new entrant, most likely Chinese language, although the business stresses a steady and powerful home market will probably be important to attracting new inward funding.

One other requirement will probably be for the automotive sector to qualify for decrease power payments beneath the British Industrial Competitiveness Scheme.

Trying on the automotive market extra broadly, the SMMT additionally requires an easing within the EV mandate, which penalises motor producers in the event that they fail to promote the required proportion of recent electrical autos - such penalties quantities to round £5bn final yr alone and are “unsustainable”.

Mr Hawes added: "Structural adjustments, new commerce limitations, and a cyber assault that stopped manufacturing at one of many UK's most necessary producers mixed to constrain output, however the outlook for 2026 is one among restoration.

"The launch of a raft of recent, more and more electrical fashions and an bettering financial outlook in key markets augur effectively.

"The important thing to long-term development, nevertheless, is the creation of the suitable aggressive circumstances for funding, decreased power prices, the avoidance of recent commerce limitations, and a wholesome, sustainable home market.