UK vehicle production fell 7.5 percent in the first half of 2026, with manufacturers producing 385,979 cars and commercial vehicles, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
Production stabilised during the second quarter, falling by just 128 vehicles, or 0.1 percent, compared with the same period last year. Stronger exports helped offset weaker domestic output, while car production returned to marginal growth during the quarter.
Of the vehicles produced in the first six months, 294,222 were built for export, down 5.6 percent from a year earlier. Production for the UK market fell 13.2 percent to 91,757 vehicles.
Exports performed better during the second quarter, increasing by 5,075 vehicles, or 3.9 percent. Car exports also rose for a third consecutive month in June, increasing 4.5 percent. Commercial vehicle exports jumped 54.3 percent, although the SMMT said the increase reflected a particularly weak comparison from last year.
Overall June production fell 1.2 percent to 68,200 vehicles after increasing in May.
Export markets accounted for 76.2 percent of all vehicles produced in the UK during the first half of the year, highlighting the importance of international trade to the industry. The European Union remained the biggest destination, taking 166,801 cars, or 58.3 percent of UK car exports, representing a 3.4 percent annual increase.
The United States was the second-largest market, receiving 45,162 vehicles, although exports there dropped 4.6 percent. China ranked third with 12,323 vehicles, down 44.7 percent compared with the first half of 2025.
The production of electrified vehicles was also affected by changes to vehicle models at several manufacturers. Electrified cars accounted for about four in every 10 cars produced during the first half, but output was 8.6 percent lower than a year earlier.
An independent production forecast expects UK car and light commercial vehicle production to remain broadly unchanged at about 740,000 units this year before returning to growth in 2027.
The SMMT said the UK still has the potential to exceed one million vehicles a year, but production would need to increase by about 40 percent. Further investment in new vehicle models would be needed to reach that level.
The trade body is calling for faster implementation of the government’s Modern Industrial Strategy and action to reduce industrial electricity costs. It is also seeking changes to the Zero Emission Vehicle mandate, saying manufacturers face regulations that are moving faster than consumer demand.
The SMMT also warned that unresolved UK-EU rules of origin issues could damage cross-Channel supply chains and an automotive trading relationship worth about €80 billion a year.
SMMT Chief Executive Mike Hawes said global weakness, trade pressures and high operating costs were damaging the industry but argued that the decline could be reversed through measures supporting energy costs, regulation and international trade.
The UK automotive sector generates more than £85 billion in turnover, contributes £18 billion in gross value added and directly employs around 188,000 people. Across manufacturing, retail and related services, the wider industry supports about 830,000 jobs.
