FX.co ★ UK Car Production Drops 10.7% in February

UK car production fell 10.7% year-on-year to 65,885 units in February 2026, following an 8.2% decline in January, as model changeovers and subdued global demand continued to weigh on output. Exports dropped 11.5% to 53,140 vehicles, though overseas markets still accounted for the majority of production. The EU remained the principal destination, taking 63.6% of all exports, with shipments to the bloc rising 5.3%. This partially offset steep declines in exports to the US (-34.3%), China (-66.4%), and Japan (-6.8%).

Domestic demand also softened, with output for the UK market down 7.5% to 12,745 units. Production of electrified vehicles (BEVs, PHEVs, and HEVs) slipped 2.8% to 26,629 units; however, their share of total car output increased to 40.4%, underscoring a continued shift toward low-emission vehicles despite the broader downturn in the sector.