"Electrified" car production rises in first half of 2025

While overall UK vehicle production fell in first half of 2025, "electrified" car production rose by 1.8% to 160,107 units – delivering a record share of output for the first half of the year, according to the SMMT. This means that hybrid, plug-in hybrid and battery electric vehicles accounted for more than two in five (41.5%) units produced in the UK so far in 2025.

Overall UK new vehicle manufacturing declined by -11.9% to 417,232 units in the first six months of the year. Year-to-date car output declined by -7.3% as 385,810 cars rolled off factory lines and commercial vehicle production output fell -45.4% to 31,422 units.

UK car production remains export-focused, with 76.9% of output headed overseas year-to-date and greater certainty now returning to key markets. 

The EU remains the main destination for UK car exports (54.4% share), followed by the US (15.9%) China (7.5%), Turkey (4.1%) and Japan (2.7%), with these five destinations alone accounting for more than eight in 10 overseas sales. 

Despite three straight months of declining export volumes culminating in an -18.7% drop in June, the US maintained its position as the UK’s biggest single export market underscoring the importance of the UK-US trade deal. That deal, which came into force on 30 June, gives the UK reduced tariff rates into the US automotive market, which can become a basis for future growth.

Mike Hawes, SMMT Chief Executive, said: "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."