Published by Global Banking & Finance Review®
Posted on August 28, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleUK car production rose 5.6% in July, despite a 10.8% drop in total vehicle output. SMMT calls for better government support amid ongoing industry challenges.
(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.
"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.
Hawes also called for better execution of government strategies to support growth in the sector.
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)
The UK's car production rose 5.6% in July to 69,127 units.
The sector is facing weak consumer confidence, volatile trade flows, and significant investments in new technologies.
SMMT expects production for light vehicles to return to growth in 2026, with output rising 6.4% to 803,000 units.
Despite the signing of the U.S.-UK trade deal in June, tariffs continue to disrupt British automakers' export strategies.
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.
Explore more articles in the Finance category
