UK car production slumped by 15.5 per cent in 2025 as industry faced ‘worst year in a generation’
British motor industry suffers its ‘worst year in a generation’
- The British motor industry recorded its "worst year in a generation" in 2025, with vehicle production decreasing by 15.5 per cent to 764,715 units.
- Key factors contributing to the decline included the closure of the Stellantis Vauxhall factory, a cyber-attack on Jaguar Land Rover, tariffs imposed by the US, and the ongoing transition to electric vehicle production.
- This dismal performance negatively impacted the UK's GDP, leading the government to invest £1.5 billion to support the Jaguar Land Rover supply chain and protect jobs.
- Towards the end of 2025, production began to recover as operations at Jaguar Land Rover normalised and the new electric Nissan Leaf started rolling off production lines.
- Industry leaders express optimism for 2026, forecasting a recovery in vehicle production and highlighting a record 41.7 per cent share of output from electrified cars, while also advocating for lower energy costs and an easing of the EV mandate.
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