Production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) cars rose by 8.3% to a combined 298,813 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
The figure represents a record 41.7% share of output, and with the start of next generation volume electric car production in Sunderland, and the planned launch of seven new EV models across the UK, output is expected to grow in 2026, the SMMT added.
Significant public and private investment has already been committed to the UK’s EV transition –with government’s £4 billion DRIVE35 programme launched as part of its Modern Industrial Strategy.
Achieving the Strategy’s ambition of UK automotive production reaching over 1.3 million per year by 2035 “now depends on the delivery of the commitments set out in the Strategy”, the SMMT said.
The latest independent production outlook expects overall UK car production to return to growth with output set to rise by more than 10% to some 790,000 units in 2026.
Overall, UK vehicle production fell 15.5% in 2025, manufacturing 717,371 cars and 47,344 commercial vehicles, with output falling by 8.0% and 62.3% respectively.
Volumes were constrained by a number of factors, including a cyber incident stopping production at Britain’s biggest automotive employer; new tariffs on trade across the Atlantic; the consolidation of two CV plants into one; and ongoing restructuring as plants shift to a decarbonised future, the SMMT added.
The SMMT said that “a forward-looking trade agenda that deepens existing relationships and builds new ones is also fundamental to what is an export-led industry”.
Europe remains the UK’s biggest automotive export market and the biggest source of imported vehicles and components, so “tariff-free trade and market access must be assured”, it added, despite a looming change to Rules of Origin requirements agreed under the Brexit deal, and ‘Made in Europe’ proposals coming from the European Commission.
Mike Hawes, SMMT Chief Executive, said:
“2025 was the toughest year in a generation for UK vehicle manufacturing. Structural changes, new trade barriers, and a cyber attack that stopped production at one of the UK’s most important manufacturers combined to constrain output, but the outlook for 2026 is one of recovery.
“The launch of a raft of new, increasingly electric, models and an improving economic outlook in key markets augur well. The key to long term growth, however, is the creation of the right competitive conditions for investment; reduced energy costs; the avoidance of new trade barriers; and a healthy, sustainable domestic market. Government has set out how it will back the sector with its Industrial and Trade strategies, and 2026 must be a year of delivery.”
Colin Walker, Head of Transport at the Energy & Climate Intelligence Unit (ECIU), said:
“While overall UK car production fell in 2025, electrified vehicles bucked the trend with an increasing number being built. It is notable that the SMMT’s optimism for a stronger 2026 is based on EVs, with a slew of new models entering production in UK factories this year.
“This goes to show that, with the world moving to EVs, the future of the UK’s car industry rests on it making a successful transition to building them. This has been laid out in stark detail in a report by CBI Economics. [2] It found that a rapid and successful transition to building EVs could see the car industry’s contributions to the UK economy could increase by over £16bn, with 167,000 new jobs being created. Conversely, were the car industry to fail in making this transition, economic output could fall by as much as 73%, or £34.1bn, and over 400,000 jobs could be lost.
“Government support is critical to achieving success, and this includes the provision of a stable and supportive regulatory environment through keeping measures like the ZEV Mandate in place.”
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