"Today's SMMT figures point to an encouraging upturn with production rising for the second successive month. That said, we cannot underestimate the scale of the challenges facing the UK automotive sector. This year's output is still set to fall below the levels seen during the Covid-19 pandemic.
"This reflects more than just factory closures, it highlights broader pressures, including ongoing uncertainty over US trade policy which is impacting exports to one of our key markets.
"The industry is undergoing a significant pivot towards EVs, supported by government incentives and mandates. However, EV adoption continues to face hurdles around affordability and infrastructure. For UK manufacturers, there is a clear opportunity in the growing demand for affordable EVs, where consumers are responding enthusiastically to new entrants, including Chinese brands increasingly targeting the UK and European markets.
"Until these challenges ease, the industry faces a critical juncture. UK manufacturers must balance declining output with new waves of investment, regulatory pressure, and the transition to electric and clean vehicles. Government initiatives, including the DRIVE35 plan and EV incentives, aim to restore competitiveness, boost investment, and support decarbonisation - but rapid implementation will be essential to ensure these plans have a tangible impact."
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