UK car production fell 10.6% year-on-year to 61,767 units in July 2026, following a 1.3% decline in June. The downturn was largely driven by weaker export demand and the earlier timing of routine summer maintenance shutdowns. Car exports dropped 16% overall, with shipments to the European Union down 15%. Exports to other key markets also declined, falling 18% to the United States, 19% to Turkey, 37% to China and 24% to Japan. The slump in overseas demand more than offset an increase in vehicles produced for the domestic market.
Commercial vehicle output also contracted sharply, sliding 34% to 1,888 units. In contrast, production of fully electric and hybrid models rose 6.8% to 25,678 units, marking the first monthly increase of the year. These vehicles accounted for more than four in every ten cars built.
According to the SMMT, UK factories have produced just under 450,000 cars and commercial vehicles so far this year. The trade body added that annual output could reach 1 million units by the end of the decade, provided manufacturers secure new investment and enhance their international competitiveness.