Vehicle production in Britain falls to lowest level since 1950s-Xinhua

Vehicle production in Britain falls to lowest level since 1950s

Source: Xinhua

Editor: huaxia

2026-01-29 14:53:45

LONDON, Jan. 29 (Xinhua) -- Britain's vehicle production fell sharply in 2025 to its lowest level since the early 1950s, reflecting mounting pressures on the automotive sector, industry data showed Thursday.

A total of 764,715 cars and commercial vehicles were built in Britain last year, down 15.5 percent from 2024, according to the Society of Motor Manufacturers and Traders (SMMT). Car output fell 8 percent to 717,371 units, while production of commercial vehicles plunged 62.3 percent to 47,344 units.

The SMMT said output was constrained by a combination of factors, including a cyber incident that halted production at Britain's largest automotive employer, new tariffs on transatlantic trade, the closure and consolidation of commercial vehicle plants, and restructuring as manufacturers shift toward electric vehicles.

A large-scale cyberattack at Jaguar Land Rover (JLR) in early 2025 forced the company to suspend production for more than a month. The incident caused major production losses and disrupted suppliers across Britain's automotive supply chain.

Commercial vehicle production was hit particularly hard after Stellantis closed its van factory in Luton in southeast England, contributing to a sharp fall in the output of trucks, vans, buses and coaches.

Exports, which account for more than three-quarters of Britain's vehicle output, also weakened. Europe remained the largest export destination, taking 56.7 percent of British-built vehicles, followed by the United States at 15.0 percent and China at 6.3 percent. Shipments to all three markets declined, with exports to the United States falling by 18.3 percent, partly due to tariff uncertainty earlier in 2025, the industry body said.

Despite the weak annual performance, the SMMT said there were early signs of stabilization. In December, car production rose 17.7 percent year-on-year to 53,003 units, ending four consecutive months of decline.

The SMMT said the rebound was driven by new electric vehicle models entering production, adding that Britain could produce close to one million vehicles a year by 2027 if market conditions continue to improve.

Mike Hawes, chief executive of the SMMT, described 2025 as "the toughest year in a generation" for Britain's vehicle manufacturing but said the outlook for 2026 was one of gradual recovery.

Hawes added that long-term growth would depend on lower energy costs, reduced trade barriers and a more competitive domestic market.

The British government has pledged to support the sector through its Modern Industrial Strategy, including a 4 billion-pound (5.54 billion-U.S.-dollar) investment program aimed at accelerating the transition to electric vehicles. However, industry leaders cautioned that achieving the government's target of producing 1.3 million vehicles a year by 2035 would require sustained investment and policy support.