The production of cars in Britain has declined to its lowest level in 70 years. In 2025, the Society of Motor Manufacturers and Traders reported that 717,371 cars were manufactured in the country, marking an 8% decrease from the previous year. Factors contributing to this decline include import tariffs imposed by President Trump and a significant cyber attack on Jaguar Land Rover.
This drop in production levels means that the UK has built fewer cars than at any time since 1956 when the Morris Minor was a popular model. In contrast, during the 1970s, the country was producing over 1.9 million cars annually.
Despite the challenges faced in the previous year, the SMMT is optimistic about the future. They anticipate a boost in production with the introduction of Nissan’s new electric Leaf model, manufactured in Sunderland. Forecasts indicate that car production in the UK could reach 790,000 units this year and potentially reach one million next year, including commercial vehicles. Notable car plants in Britain, such as Mini’s Cowley factory, are expected to contribute to this increase.
Mike Hawes, the SMMT chief executive, acknowledged the difficulties of the past year but expressed hope for a more positive outlook in 2026. He highlighted that domestic car production for the UK market decreased by 8.2%, while exports saw a 7.9% decline, with the EU being the largest export destination followed by the US, China, Turkey, and Japan. The UK government aims to increase car production to 1.3 million by 2035, necessitating the construction of a new car plant.
Speculation suggests that a Chinese car manufacturer could be a potential partner in achieving this goal, with rising sales of Chinese-made electric cars in the UK. High energy costs in Britain present a challenge to establishing a new plant. Recent global events, such as President Trump’s trade threats and tensions between Russia and Ukraine, have added further uncertainty to the UK car industry.
In response to these challenges, discussions have taken place between the car industry and the Ministry of Defence, exploring potential collaboration to boost production capacity. With parts suppliers affected by the slowdown, there is consideration of shifting some production towards defense-related manufacturing. This strategic shift aligns with the government’s commitment to increase defense spending amid ongoing geopolitical tensions.
Historically, car manufacturers have adapted production during crises, as seen with Ford’s Dagenham plant producing ventilators for Covid patients during the pandemic. This flexibility and resilience in the face of challenges demonstrate the industry’s ability to innovate and respond to changing circumstances.
