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UK car industry shows signs of recovery after rough start to 2025

By Mathilda Bartholomew | August 28, 2025

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UK car factories are showing signs of recovery as July production rises, though annual output remains below last year’s levels.

UK car industry shows signs of recovery after rough start to 2025

UK car factories turned things around in July, with production up 5.6% compared to last year.

In total, 69,127 new cars rolled off UK production lines last month. Of those, about 14,000 stayed in the UK, while nearly 55,000 were shipped overseas. Even though exports to Europe dropped nearly 8%, the US and China picked up some of the slack, with America now taking almost a fifth of all UK-built cars.

But zoom out and the picture isn’t as pretty. So far this year, car output is down 5.5%, with less than half a million cars built between January and July. If you include vans and other commercial vehicles, production is down nearly 12%.

The Society of Motor Manufacturers and Traders (SMMT) warned recently that UK car production is at its lowest point in decades, apart from the Covid years.

“This has been one of the most turbulent periods in the history of the UK automotive industry,” said SMMT boss Mike Hawes.

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