UK vehicle manufacturing fell in the first half of the year as the sector continued to grapple with global economic and trade uncertainty. British car output fell 7.3% in the first six months of the year, while van and other commercial vehicle production plummeted by 45.4%, according to data from the Society of Motor Manufacturers and Traders (SMMT).
According to the organisation, production was slowed or halted by some manufacturers due to uncertainty around the global economy and earlier threats of Donald Trump's US tariffs.
Business Secretary Jonathan Reynolds blamed Donald Trump's tariffs and competition from China for the slump in vehicle manufacturing.
He told BBC Breakfast he was "very concerned" about the industry, which he described as the "jewel in the crown" of British manufacturing.
"I'm very concerned about automotive, the pressures on the system which come from the US trade agenda, but also an incredible increase in capacity from China. It's why as a Government we've adopted so many measures specifically around the automotive sector.
"So that's everything from the industrial strategy, which reduces the energy costs for British automotive factories making vehicles - cars, vans and buses. It's also why we changed the regulation that we inherited from the previous government on the transition to electric vehicles, why we negotiated the automotive quota with the US - a key market for us in that regard - and also why we've just announced an incentive program for... electric vehicles made in the UK, which will bring the cost down for British consumers."
Data from the SMMT shows that 417, 232 vehicles have been built in Britain so far this year up to June 2025. This is down on the 473,583 models which had left forecourts by the same stage last year in a major blow.
However, there was some good news with data showing an increase in the number of electric cars being developed. The statistics revealed that while overall output fell, electrified car production rose by 1.8% to 160,107 units.
Mike Hawes, SMMT Chief Executive, stressed the UK manufacturing statistics were "disappointing" but revealed the UK could “reverse” its decline.
He explained: “Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception. The figures are not, therefore, unexpected but remain very disappointing. However, there are foundations for a return to growth.
“The industry is moving to the technologies that will be the future of mobility, our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an Industrial Strategy with advanced manufacturing and automotive at its core.
"With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs.”
