UK Car Production in 2025 Hits a 70-Year Low

[Market Dynamics] UK car production in 2025 declined by 15.5% year-on-year, falling to 764,715 units—the lowest level in over 70 years.

Key Developments: Jaguar Land Rover Cyberattack and Trade Policies Weigh on Annual Performance

The UK automotive industry endured "the toughest year in a generation" due to multiple shocks, including the September cyberattack on Jaguar Land Rover, which halted production lines for six weeks, new trade tariffs, and plant adjustments. Mike Hawes, Chief Executive of the SMMT, stated that recovery hinges on energy costs, trade barriers, and the health of the domestic market.

Key Data: Commercial Vehicle Output Plummets 62.3%, Showing Slight Year-End Recovery

Passenger car production dropped to 717,371 units (down 8%), reverting to 1956 levels; commercial vehicle output fell sharply to 47,344 units (down 62.3%), the lowest since 1952. However, December saw a year-on-year rebound of 17.7%, ending four consecutive months of decline.

Strategic Context: Growth in Electrified Vehicles Fails to Offset Overall Downturn

Despite an 8% year-on-year increase in production of battery electric, plug-in hybrid, and hybrid electric vehicles, this growth was insufficient to reverse the sector’s systemic decline.