"UK car manufacturing remains under real strain, and the latest SMMT figures make that crystal clear with an 11.9% decrease in new vehicle manufacturing since the start of 2025. Given that over three quarters of the UK's production is being exported, global trade tensions have naturally disrupted exports and forced some firms to scale back production, a clear sign of how geopolitical changes can hit domestic output fast and hard.
"While the figures are stark, there is reason for cautious optimism towards the UK's new trade deal with the US – which positions the UK competitively on the global stage – and then there is the government's recently announced EV measures. Providing they're rolled out quickly, with clarity on which vehicles qualify and how these measures will be delivered, they could inject much-needed confidence and growth into the second half of the year, even driving recovery into 2026.
"Until then, the current challenges we're seeing won't disappear overnight. Supply chains are still fragile, and while the EV transition gathers pace, close collaboration between the government and manufacturers will be critical to safeguarding jobs, strengthening industry resilience and restoring international competitiveness."
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