Asger Risom
The British car industry is facing a historic downturn, with vehicle output hitting its lowest first-half total in 72 years, according to new industry figures.
The British car industry is facing a historic downturn, with vehicle output hitting its lowest first-half total in 72 years, according to new industry figures.
Production Slumps to 417,000 in First Half of 2025
Just 417,000 cars and vans were built in the UK between January and June — the lowest figure for this period since 1953, according to the Society of Motor Manufacturers and Traders (SMMT).
Full-Year Output Expected to Lag Behind Pandemic Levels
The SMMT forecasts total 2025 production at 755,000 vehicles — fewer than during the Covid-19 pandemic, and far below the 1.82 million produced in 2016.
Brexit and Covid Cited as Major Factors
Analysts say Brexit created long-term uncertainty and raised trade barriers, while the pandemic exposed the high cost of UK manufacturing in terms of labour and energy.
Manufacturers Shift Production Abroad
Industry experts note that carmakers with UK plants also have factories overseas, making it easier to relocate production when costs and conditions worsen.
Government Targets 1.3 Million Vehicles by 2035
Officials say they aim to boost annual production to 1.3 million cars and commercial vehicles within a decade — but the gap to that goal is widening.
Suppliers Struggle with Price Pressures
Component makers say constant demands for price cuts are squeezing margins, with some doubting there will be a major resurgence in UK vehicle production.
Smaller Firms Feeling the Impact
Businesses supplying the sector are diversifying into other industries to survive, with many warning that being overly reliant on automotive manufacturing is now too risky.
