Car production crashes to a 73-year low as UK output falls to just half what it was a decade ago

• e-mail

The number of vehicles built in the UK fell by 15.5 per cent in 2025 to the lowest output seen in 73 years in what the motor trade body dubbed 'the toughest year in a generation'.

Just 764,715 vehicles - 717,371 cars (down 8 per cent) and 47,344 vans (down 62 per cent) - rolled off assembly lines in 2025.

This is the lowest manufacturing volume since post-war 1952 - excluding the Covid-19 lockdown years - and is down 52 per cent on 2015 outputs when some 1.6 million motors were being made in Britain.

The slump was triggered by significant declines posted by two of the nation's biggest car makers.

Jaguar Land Rover saw outputs fall by almost 22 per cent as a result of Jaguar pausing production for a year as part of plans to reboot as an electric-only luxury brand in 2026. JLR outputs were also hammered in the months of September and October after it fell victim to a cyber attack that forced it to temporarily close its cars plants in Britain - and across the world - for more than five weeks.

Another notable production crash was recorded by Vauxhall's parent firm Stellantis, with vehicle outputs down a monumental 71 per cent in the wake of the closure of the 120-year-old Luton van factory last March.

Just 764,715 vehicles - 717,371 cars (down 8%) and 47,344 vans (down 62%) - rolled off assembly lines in 2025. This is the lowest manufacturing volume since post-war 1952

The Society of Motor Manufacturers and Traders (SMMT) blamed ongoing restructuring and plant upgrades to shift to electric vehicle outputs too had an impact on volumes.

New tariffs on trade across the Atlantic also took a toll, as some vehicle companies temporarily suspended exports to the US on the back of President Donald Trump's crippling 25 per cent levy announced in March 2025.

The UK Government two months later negotiated a more favourable 10 per cent tariff for motors arriving from British factories, though the SMMT said this has still influenced 2025's total numbers.

Over the course of the calendar year, car production for the UK market and exports both fell by around 8 per cent.

Production of battery electric, plug-in hybrid and hybrid cars increased by 8.3 per cent to just under 300,000, a record 41.7 per cent share of output.

Outputs are forecast to increase this year with the planned launch of seven new EV models, the SMMT said.

Total car production is predicted to return to growth in 2026, with output set to rise by more than 10 per cent, according to the trade body's report published on Thursday.

The SMMT's data showed Europe received 56 per cent of vehicles exported, followed by the US (15 per cent), and China (6.3 per cent).

Mike Hawes, SMMT chief executive, said: '2025 was the toughest year in a generation for UK vehicle manufacturing.

'Structural changes, new trade barriers, and a cyber attack that stopped production at one of the UK's most important manufacturers combined to constrain output, but the outlook for 2026 is one of recovery.

'The launch of a raft of new, increasingly electric models and an improving economic outlook in key markets augur well.

'The key to long-term growth, however, is the creation of the right competitive conditions for investment, reduced energy costs, the avoidance of new trade barriers, and a healthy, sustainable domestic market.

'Government has set out how it will back the sector with its industrial and trade strategies, and 2026 must be a year of delivery.'

Read More

Cyber attack on Jaguar cost Britain £2bn: Crippling IT hack was 'single most financially damaging' to ever hit UK

The SMMT's report came as reports emerged that Chinese car giant Chery is close to agreeing a deal with JLR to allow the East Asian auto maker to build vehicles in the UK in what could be a massive injection for the nation's motor making sector.

According to the Financial Times, Chery - which is China's largest car exporter - is in talks to utilise a JLR site which is operating at 'undercapacity' to build its own brand cars.

Sources familiar with the subject said that the proposals are backed by the UK government, with Prime Minister Keir Starmer discussing the matter during his Beijing visit. The Prime Minister has just arrived in China for a three day visit.

The UK has been actively courting Chery to make its vehicles in Britain for the last few years the sources said. JLR and Chery have had a partnership since their first joint venture back in 2012.

UK's top five car makers - what happened in 2025? 

Nissan continues to be the UK biggest car maker.

Its factory in Sunderland 273,322 cars last year, which was a decline of 3.1 per cent on 2024 outputs.

However, the North East site has seen a significant shift in the last 12 months as it began production of the all-new electric Leaf - which went on sale only a matter of months ago - and has already started to prepare its assembly lines for a new electrified Juke coming this year.

The Qashqai - which was Britain's third most popular new car by sales - was also named the most exported UK-made vehicle of 2025.

Nissan Sunderland retained its crown as Britain's biggest car-producing facility. The North East factory assembled 273,322 cars last year, which was down 3.1% on 2024 outputs

The Nissan Qashqai - which was Britain's third most popular new car by sales - was also named the most exported UK-made vehicle of 2025 

Nissan's output fall was partially caused by an upgraded to assembly lines to allow production of the new electri Leaf to begin in December

The factory, which is part of the beating heart of UK automotive production, has adopted future technology including intelligent use of big data, virtual reality and digital mapping of the plant 

JLR was second in terms of volumes, building 201,283 vehicles across its various sites in Britain.

The vast majority of production was at the Solihull plant in the West Midlands - where Range Rovers are built - and the Halewood factory responsible for churning out Range Rover Evoque and Land Rover Discovery Sport passenger cars.

These sites were severely impacted by the cyber breach orchestrated on 30 August, which triggered a production shutdown for over five weeks as the company attempted to safely reboot its IT systems following the attack.

Read More

Ten cars from European and US brands you might not know are made in China

JLR's Castle Bromwich plant, which is home to Jaguar production, has for the last 13 months been in a state of conversion. Outputs of vehicles ceased towards the end of 2024 as the British brand makes preparations to become an all-electric car maker.

The third biggest car maker was Mini, which recorded a 12.2 per cent increase in output at Plant Oxford last year despite having moved production of some of its electric models to China as part of a deal with Great Wall Motors. This includes the new Mini Cooper Electric and Aceman.

Toyota's Burnaston factory in Derbyshire - where the Corolla and Suzuki Swace sister model are built - was the fourth biggest UK car maker by volume, though outputs fell by 7.9 per cent year-on-year with 92,132 motors coming off the production line in 2025.

JLR sites were severely impacted by the cyber breach orchestrated on 30 August, which triggered a production shutdown for over five weeks as the company attempted to safely reboot its IT systems following the attack

JLR was second in terms of car volumes, building 201,283 vehicles in Britain. The vast majority of production was at the Solihull plant in the West Midlands and Halewood factory in Merseyside (pictured). Outputs at its Castle Bromwich factory would have dramatically declined as it spent the entirety of 2025 being refurbished in preparation to build EVs 

The third biggest car maker was Mini, which recorded a 12.2% increase in output at Plant Oxford last year despite having moved production of some of its electric models to China as part of a deal with Great Wall Motors. This includes the new Mini Cooper Electric and Aceman

Vauxhall's Luton plant saw the final van roll off its production line in March last year as Stellantis moves its electric van production to Ellesmere in Cheshire

The closure of the Luton factory triggered a massive 71% decline in UK vehicle production for Vauxhall's parent company, Stellantis

Still, this was enough to overtake Stellantis, which saw its outputs tumble by 70.6 per cent - down from 105,450 units in 2024 to only 31,048 vehicles in 2025 - after it closed the Luton van factory in March.

The move put some 1,100 jobs in Bedfordshire at risk, with employees offered the opportunity to relocate to its Ellesmere Port plant in Merseyside some 180 miles away.

Stellantis' Ellesmere Port site is Britain's first electric-only mass vehicle production plant where the electric Vauxhall and Opel Combo, Citroën ë-Berlingo, Peugeot e-Partner and Fiat E-Doblo are made. 

However, the severe lack of demand for electric vans - which is far lower than appetite for electric cars - has seen the company's UK outputs fall off a cliff edge.