UK car production falls 13.6% in January as exports slide

"A combined 67,415 vehicles left British factories during the month, comprising 65,249 cars and 2,166 commercial vehicles. Car production declined by 8.2 per cent compared with January 2025, while commercial vehicle output slumped by 68.6 per cent year on year."

"The fall was primarily driven by reduced overseas demand. Although domestic appetite for UK-built cars remained broadly stable, export volumes softened, particularly in markets outside Europe. Exports typically account for the majority of British vehicle production, leaving manufacturers exposed to fluctuations in global demand and trade conditions."

"Electrified vehicle output also declined. Production of battery electric vehicles (BEVs), plug-in hybrids and hybrid models fell by 10.6 per cent to 26,854 units, representing 41.2 per cent of total car output. Despite the drop, electrified vehicles continue to form a substantial share of UK production as manufacturers transition towards zero-emission platforms."

UK vehicle manufacturing experienced a significant contraction in January, with total production declining 13.6% to 67,415 vehicles. Car production fell 8.2% while commercial vehicle output plummeted 68.6% year-on-year. The decline was primarily driven by reduced overseas demand, particularly in non-European markets, despite stable domestic appetite. Electrified vehicle production also decreased 10.6%, though these vehicles maintained a 41.2% share of total car output. The United States remained the second-largest export destination at 14.1%, followed by Japan, China, and Turkey. Industry leaders attributed the weak performance to subdued global demand, protectionist measures, and trade uncertainties, though recovery is anticipated later in the year with new electric model launches.

Read at Business Matters