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UK car production rises for second consecutive month in July

Published by Global Banking & Finance Review

Posted on August 28, 2025

2 min read

· Last updated: January 22, 2026

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UK car production rises for second consecutive month in July
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(Reuters) -Britain's car production grew for the second month in a row in July but overall vehicle output fell, hurt by a slump in commercial vehicle manufacturing, data from the Society of Motor

UK car production rises for second consecutive month in July

Overview of UK Car Production Trends

(Reuters) -Britain's car production grew for the second month in a row in July but overall vehicle output fell, hurt by a slump in commercial vehicle manufacturing, data from the Society of Motor Manufacturers and Traders (SMMT) showed on Thursday.

Current Production Statistics

"It remains a turbulent time for automotive manufacturing, with consumer confidence weak, trade flows volatile and massive investment in new technologies underway both here and abroad," said SMMT CEO Mike Hawes.

Challenges Facing the Industry

Hawes also called for better execution of government strategies to support growth in the sector.

Future Projections for Vehicle Production

Despite the signing of the U.S.-UK trade deal in June, tariffs continue to disrupt British automakers' export strategies, even as the United States remains their largest international market.

The UK's car production rose 5.6% in July to 69,127 units, while total vehicle production was down 10.8% at 72,006 units, the industry body's data showed.

However, SMMT expects production for light vehicles to return to growth in 2026, with output rising 6.4% to 803,000 units.

The UK's new 10-year industrial plan, including the 2.5 billion pound ($3.38 billion) DRIVE35 programme, is expected to boost growth across the manufacturing sector by supporting investments, accelerate electric vehicle innovation and create thousands of jobs.

($1 = 0.7402 pounds)

(Reporting by DhanushVignesh Babu and Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich)

Key Takeaways

  • UK car production increased by 5.6% in July.
  • Overall vehicle output fell due to a decline in commercial vehicle manufacturing.
  • SMMT highlights the need for better government strategy execution.
  • Tariffs continue to affect British automakers' export strategies.
  • The DRIVE35 programme aims to boost the manufacturing sector.

Frequently Asked Questions

What was the percentage increase in UK car production in July?
The UK's car production rose 5.6% in July to 69,127 units.
What factors are affecting the automotive manufacturing sector?
The sector is facing weak consumer confidence, volatile trade flows, and significant investments in new technologies.
What is the expected growth for light vehicle production?
SMMT expects production for light vehicles to return to growth in 2026, with output rising 6.4% to 803,000 units.
How has the US-UK trade deal impacted British automakers?
Despite the signing of the U.S.-UK trade deal in June, tariffs continue to disrupt British automakers' export strategies.
What is the DRIVE35 programme?
The DRIVE35 programme is part of the UK's new 10-year industrial plan, aimed at boosting growth across the manufacturing sector with a £2.5 billion investment.

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