British car industry braces for 2025 dip
Britain’s new vehicle production is expected to decline by 15 per cent in 2025, weighed down by global trade disruption; however, a reversal is expected the next year, industry data showed on Thursday.
While global automakers continue to feel the impact of US President Donald Trump’s tariffs, the UK is set to benefit from a new trade deal that slashed taxes on British car exports.
UK new vehicle production is expected to reach 755,000 units this year, data from the Society of Motor Manufacturers and Traders showed, lower than last year. However, the sector is expected to recover in 2026 with a 6.4 per cent growth, pushing numbers back above 800,000 units.
“There are foundations for a return to growth,” said SMMT CEO Mike Hawes, after calling half-yearly output figures “disappointing”.
Car and commercial vehicle manufacturing fell nearly 12 per cent to 417,232 units in the first six months of the year. However, June output rose 6.6 per cent in the month, breaking its five-month downward trend, to 66,317 units.
However, electrified car production rose by 1.8 per cent to 160,107 units – a record share of output for the first half of the year.