Finance
UK car production drops in January as exports falter
Published by Global Banking & Finance Review®
Posted on February 27, 2026
2 min readLast updated: February 27, 2026
Quick Summary
UK car production fell 8.2% to 65,249 in January as exports dropped 10.1% on weak demand. Overall vehicle output declined 13.6%, with commercial vehicles down 68.6%. SMMT still expects about 790,000 cars in 2026.
UK January Car Output Down 8.2% as Export Demand Weakens Sharply
January Production and Export Trends
Feb 27 (Reuters) - Britain's car production fell 8.2% to 65,249 units in January, as exports declined due to weak demand in key global markets, industry data showed on Friday.
Exports Slide 10.1% to 51,396 Units
Car exports from the UK fell 10.1% to 51,396 units during the month, marking a disappointing start to the year.
Trade Policy and Market Access Concerns
"It reinforces the need for a forward-looking trade agenda that secures existing preferential access – notably with the biggest market on our doorstep, given protectionist ‘Made in Europe’ proposals – and builds new ones with markets worldwide," said Mike Hawes, CEO of the Society of Motor Manufacturers and Traders.
Key Export Destinations: EU, U.S., China
The EU, U.S. and China are among the biggest export destinations for British automobiles.
Overall Vehicle Output Down 13.6%
Overall UK vehicle production, including that of commercial vehicles, fell 13.6% to 67,415 units, data from SMMT showed.
Impact of Plant Restructuring
Commercial Vehicles: 10th Straight Monthly Drop
Commercial vehicle production extended its decline for the tenth straight month following a major plant restructuring, falling 68.6% to 2,166 units.
Outlook Reaffirmed: 790,000 Cars in 2026
However, the latest independent outlook has reaffirmed prior expectations of overall UK car production growing to about 790,000 units in 2026, SMMT added.
Reporting Credits
(Reporting by Unnamalai L in Bengaluru; Editing by Jonathan Ananda)
Key Takeaways
- •UK car production dropped 8.2% year-on-year to 65,249 units in January.
- •Exports declined 10.1% to 51,396 units amid weaker demand in the EU, U.S. and China.
- •Overall vehicle output fell 13.6% to 67,415 units; commercial vehicles slid 68.6% to 2,166.
- •SMMT’s Mike Hawes urged a forward-looking trade agenda amid ‘Made in Europe’ proposals.
- •Independent outlook still sees UK car output around 790,000 units in 2026.
Frequently Asked Questions about UK car production drops in January as exports falter
1What is the main topic?
Britain’s January car production declined 8.2% to 65,249 units as exports fell 10.1% on weaker demand in key markets, according to SMMT data.
2Why did UK car exports falter?
Demand softened in major destinations including the EU, U.S. and China. Industry leaders also cite rising protectionism and policy uncertainty affecting trade.
3What is the outlook for 2026?
Despite January’s drop, the latest independent outlook reaffirms UK car production could reach about 790,000 units in 2026 as new models ramp up.
