Despite overall output falling, electrified car production rose by 1.8% to 160,107 units – delivering a record share of output for the first half of the year, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
It comes as UK new vehicle manufacturing declined by 11.9% to 417,232 units in the first six months of the year.
In addition, hybrid, plug-in hybrid and battery electric vehicles accounting for more than two in five (41.5%) units produced in the UK in 2025.
The decline was softened by a 6.6% increase in car production in June, although this was in comparison with last year, when model changeovers and supply chain issues stymied output, it added.
As a result, year-to-date car output declined by 7.3% as 385,810 cars rolled off factory lines. Restructuring at commercial vehicle production plants resulted in a first-half volume fall of 45.4% to 31,422 units.
UK car production remains export-focused, with 76.9% of output headed overseas year-to-date and greater certainty now returning to key markets.
The EU remains the main destination for UK car exports (54.4% share), followed by the US (15.9%) China (7.5%), Turkey (4.1%) and Japan (2.7%), with these five destinations alone accounting for more than eight in 10 overseas sales.
Despite three straight months of declining export volumes culminating in an 18.7% drop in June, the US maintained its position as the UK’s biggest single export market underscoring the importance of the UK-US trade deal.
That deal, which came into force on 30 June, gives the UK reduced tariff rates into the US automotive market, which can become a basis for future growth, the SMMT said.
Mike Hawes, SMMT Chief Executive, said:
“Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception. The figures are not, therefore, unexpected but remain very disappointing. However, there are foundations for a return to growth.
“The industry is moving to the technologies that will be the future of mobility, our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an Industrial Strategy with advanced manufacturing and automotive at its core. With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs.”
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