This decrease brings total production for the month to 72,006 vehicles, marking a continued trend of lower volumes for the sector. The decline was primarily driven by an 81.1% fall in commercial vehicle (CV) production, largely caused by plant restructuring and the after-effects of a particularly record-breaking July in 2024 for CV output.
Car manufacturing, however, showed positive signs of recovery. July saw car output rise for the second consecutive month, up by 5.6% to 69,127 units. This growth was supported by stronger demand from both domestic markets (rising 13.6%) and exports (up 3.7%), even as shipments to the European Union and China declined slightly. Exports to the United States, Turkey, and Japan registered notable increases, helping bolster overall prospects for car makers.
Despite car production improvement, the severe contraction in commercial vehicle output dominated the overall result. Sector analysts attribute the drop to restructuring processes and last year’s exceptional output, setting a high comparative benchmark that amplified the perceived decline.
Looking ahead, the industry is cautiously optimistic. While total vehicle production in the first seven months of 2025 is down 11.7% year-on-year, forecasts project a 6.4% rebound in overall production by 2026, driven by investments in new technologies and targeted industrial strategy measures. The resilience shown in car manufacturing, amid global competition and economic uncertainty, highlights the sector’s underlying strengths and the potential for future recovery.
SMMT Verification and Key Findings
SMMT (Society of Motor Manufacturers and Traders) confirms that UK vehicle production fell by 10.8% in July 2025, with total output reaching 72,006 units for the month. This decline was primarily driven by an 81.1% drop in commercial vehicle manufacturing, caused by restructuring and comparison to last year's record July for CVs. In contrast, UK car production rose for the second month in a row, climbing 5.6% to 69,127 units. Both domestic and export car markets improved, with 13.6% growth in domestic output and 3.7% for exports, now representing 79.4% of total car production. Key export destinations included the EU, US, China, Turkey, and Japan, with notable increases for the US, Turkey, and Japan, while shipments to the EU and China fell.
Industry Outlook
Despite the overall vehicle output decline, SMMT data highlights the underlying resilience in car manufacturing and expects light vehicle production to recover by 6.4% to 803,000 units by 2026. Recent industrial strategies and trade agreements, such as DRIVE35, are anticipated to support future growth in the sector.
