Vehicle production down again amid weak global demand

UK CAR AND COMMERCIAL VEHICLE MANUFACTURING (data for February 2026)

  • UK vehicle production falls -17.2% in February, with 68,061 units leaving factories.
  • Car output down -10.7% to 65,885 units, while CV volumes drop -74.0% to 2,176 units.
  • Car exports decline -11.5% to 53,140 units with domestic demand down -7.5% to 12,745 units. 

Friday 27 March, 2026 UK vehicle production fell -17.2% in February, with 68,061 units leaving factories, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). Output comprised 65,885 cars (down -10.7%) and 2,176 commercial vehicles (-74.0%) as export demand in markets outside Europe remained weak, model changeovers impacted output and CV volumes continued to be affected by a major plant restructuring.

Exports of cars and CVs were down -11.5% and -65.1%, to 53,140 and 1,306 units respectively, though production for overseas buyers still accounted for the majority (80.0%) of total vehicle output. The EU remained the largest global market for UK plants, taking 63.6% of car exports and 88.9% of CV shipments, and while car exports to the EU rose 5.3%, demand in the US, China and Japan fell, by -34.3%, -66.4% and -6.8% respectively.

Car output for British buyers was down too, declining -7.5% to 12,745 units while CV production for the UK also fell steeply, by -81.2%, down to just 870 units. Production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) cars, meanwhile, fell -2.8% to 26,629 units, although they accounted for an improved 40.4% of car output.1

The news comes amid fresh global turmoil, notably in the Middle East, and with the UK sector facing additional pressure from ‘Made in the EU’ proposals set out in the European Commission’s Industrial Accelerator Act. As drafted, they would discriminate against UK-made vehicles and components – damaging a trading relationship worth almost £70 billion annually and potentially breaching the EU-UK Trade Cooperation Agreement – the Brexit deal – which all parties worked so hard to secure in 2020.

Governments must work together to extend full, trusted partner status to the UK automotive sector to  ensure choice and affordability for consumers, particularly of zero emission vehicles, on both sides of the Channel. It would also drive economic growth and security across the UK and Europe, supporting rather than risking jobs and improving industrial competitiveness amid multiple global headwinds.

Mike Hawes, SMMT Chief Executive, said, “Another decline for UK vehicle production and exports is extremely worrying, given these figures pre-date the crisis in the Middle East. While the sector has made efforts to build resilience into its logistics and supply chains post Covid, the conflict adds further strain. Now more than ever we must focus on our industrial competitiveness by driving down energy costs, backing our suppliers, supporting our domestic market and securing free and fair trade with Europe.”

Notes to editors

1 BEV, HEV & PHEV share of car output in February 2025 – 37.1%

The next release will be published on Thursday 30 April 2026

About SMMT and the UK automotive industry
The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations, representing the automotive industry in the UK.

The automotive industry is a vital part of the UK economy, integral to growth, the delivery of net zero and the UK as a global trade hub. It contributes £92 billion turnover and £25 billion value added to the UK economy and invested £5 billion in R&D, with 183,000 people employed directly in manufacturing and some 796,000 in total across the wider automotive industry. Many of these automotive manufacturing jobs are outside London and the South-East, with wages that are 8% higher than the UK average. The sector accounts for 13.4% of total UK exports of goods with more than 140 countries importing UK produced vehicles, generating £108 billion of trade in total automotive imports and exports.

The UK manufactures almost every type of vehicle, from cars, to vans, taxis, trucks, buses and coaches, as well as specialist and off-highway vehicles, supported by more than 2,500 component providers and some of the world’s most skilled engineers. In addition, the sector has vibrant aftermarket and remanufacturing industries. The automotive industry also supports jobs in other key sectors – including advertising, chemicals, finance, logistics and steel.

More detail on UK Automotive available in SMMT’s Motor Industry Facts publication at www.smmt.co.uk/reports/smmt-motor-industry-facts/

Words and images are copyright of SMMT

27th March 2026