UK CAR PRODUCTION FALLS 7.5% IN FIRST HALF OF 2026

British vehicle manufacturers produced 385,979 cars and vans in the first six months of 2026, representing a 7.5 per cent decline compared to the same period in 2025, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). The trade body recorded 31,000 fewer vehicles rolling off production lines during the period. Car output fell 3.6 per cent to 371,756 units, whilst van production declined more sharply, falling 54.7 per cent to 14,223 units. The SMMT attributed much of the decline to switches in production towards new models, particularly electric vehicles.

Domestic output fell 13 per cent year-on-year, whilst export production decreased 5.6 per cent over the first six months, though exports recovered in the second quarter, rising 3.9 per cent on the first three months of 2026. More than three-quarters of UK-built cars are exported, with the majority destined for Europe and the United States. The SMMT identified global market weakness, trade pressures and uncompetitive costs as principal headwinds, citing high industrial energy prices and the government's zero-emissions vehicle mandate as particular concerns. The mandate currently requires roughly 30 per cent of cars sold in Britain to be emissions-free, with this figure set to rise above one-third next year.

The SMMT said the figures demonstrated an urgent need for action on multiple challenges facing the sector. Annual output is expected to reach 740,000 units. The trade body has called for intervention to tackle energy costs and improve manufacturing competitiveness, with hopes of reaching one million annual units dependent on rendering Britain a more attractive location for vehicle production.