FX.co ★ UK Car Production Falls on Weak Exports

UK car production fell 8.2% year-on-year in January 2026 to 65,249 units, as exports declined 10.1% to 51,396 vehicles amid softer demand in key overseas markets. The EU, the US and China continue to be the largest destinations for UK-built cars.

Total UK vehicle output, including commercial vehicles, dropped 13.6% to 67,415 units. Commercial vehicle production was particularly weak, plunging 68.6% and recording a tenth consecutive monthly decline following significant restructuring at major plants.

Mike Hawes, chief executive of the SMMT, said the figures “underscore the need for a forward-looking trade agenda that preserves preferential access to major markets, notably the European Union,” in the context of rising protectionist pressures, including “Made in Europe” initiatives.

Despite the subdued start to 2026, industry forecasts still project a recovery in UK car production to around 790,000 units for the year, indicating that January’s downturn may not reflect a deeper structural weakness in the sector.