Society of Motor Producers and Merchants (SMMT) has reported a pointy contraction in UK car output firstly of the 12 months, with whole manufacturing down 13.6 per cent in January as weaker export demand weighed closely on the sector.
A mixed 67,415 automobiles left British factories through the month, comprising 65,249 vehicles and a couple of,166 industrial automobiles. Automobile manufacturing declined by 8.2 per cent in contrast with January 2025, whereas industrial car output slumped by 68.6 per cent 12 months on 12 months.
The autumn was primarily pushed by lowered abroad demand. Though home urge for food for UK-built vehicles remained broadly secure, export volumes softened, notably in markets exterior Europe. Exports sometimes account for almost all of British car manufacturing, leaving producers uncovered to fluctuations in international demand and commerce circumstances.
America remained the second-largest vacation spot for UK-built vehicles after the European Union, accounting for 14.1 per cent of exports. Japan adopted with a 2.7 per cent share, whereas China and Turkey took 2.5 per cent and a couple of.4 per cent respectively.
Electrified car output additionally declined. Manufacturing of battery electrical automobiles (BEVs), plug-in hybrids and hybrid fashions fell by 10.6 per cent to 26,854 models, representing 41.2 per cent of whole automobile output. Regardless of the drop, electrified automobiles proceed to kind a considerable share of UK manufacturing as producers transition in direction of zero-emission platforms.
The business physique mentioned the weak begin to the 12 months mirrored subdued international demand and underlined the significance of secure commerce relationships. Protectionist measures and “made in Europe” proposals in some markets had been cited as further headwinds.
Mike Hawes, chief government of the SMMT, described January’s figures as disappointing however pointed to anticipated restoration later within the 12 months as new electrical fashions enter manufacturing.
“Weak exports to markets past Europe amid gentle demand delivered a disappointing begin to the 12 months for UK car manufacturing,” he mentioned. “It reinforces the necessity for a forward-looking commerce agenda that secures current preferential entry and builds new ones with markets worldwide.”
The SMMT expects general automobile manufacturing to extend by greater than 10 per cent to round 790,000 models in 2026, with the potential to achieve a million automobiles by 2027, supplied new mannequin launches proceed on schedule and funding circumstances stay supportive.
The outlook hinges on aggressive vitality prices, a robust home market and focused provide chain assist, the commerce physique mentioned, because the sector continues its capital-intensive shift in direction of electrification.
