The UK automotive manufacturing sector suffered a severe setback in 2025, with production plummeting to its lowest point in nearly 70 years, impacted by a dual blow of a cyberattack crippling Jaguar Land Rover's production and US tariff hikes affecting domestic carmakers. Data from the Society of Motor Manufacturers and Traders (SMMT) reveals that UK car production last year fell by 8% year-on-year to 717,371 units, setting the worst record since 1956—a time when the Morris Minor and Ford (F.US) Popular were mainstream models in the British market. When commercial vehicles are included in the statistics, the performance of the UK automotive industry sinks to a new low since 1952, with overall production plummeting by 16%, partly stemming from Stellantis (STLA.US) shutting down its Vauxhall van plant in Luton.
These figures confirm that the UK automotive industry endured a dismal year, as the sector has faced a succession of challenges in recent times including the ongoing repercussions of Brexit, semiconductor supply shortages, US tariff barriers, and a slowdown in the growth rate of the electric vehicle market. As the UK's largest car manufacturer, Jaguar Land Rover's comprehensive factory shutdown for nearly six weeks last year due to a cyberattack further exacerbated the industry's difficulties. However, the SMMT forecasts that UK car production will rebound by over 10% in 2026, partly thanks to the launch of new all-electric models like Nissan's (NSANY.US) new Leaf.
Although the path to electrification in the UK is arduous, the country remains steadfast in its high electrification targets for car manufacturers. While the European Union previously proposed relaxing its 2035 zero-tailpipe-emission plan for new cars, the UK continues to require domestic automakers to annually increase the proportion of electric vehicle sales, aiming for 100% electrified sales by 2035. It is noteworthy that achieving this target presents a greater challenge for commercial vehicle manufacturers. The rising popularity of Chinese automotive brands in the UK market has led to external expectations that some Chinese carmakers might establish localized production in Britain. It is reported that during UK Prime Minister Keir Starmer's visit to China this week, plans are in place to discuss a cooperation proposal involving CHERY AUTO (09973) taking over a Jaguar Land Rover factory in the UK.
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