Author: Nik Berg
Images: Mini, Daily Herald/Mirrorpix/Mirrorpix via Getty Images
The number of cars and vans made in Britain has fallen to its lowest level since 1953 as the car industry struggles with tariffs and technology.
According to data from the Society of Motor Manufacturers and Traders, car and commercial vehicle manufacturing dropped by 11.9 per cent in the first half of 2025 to 417,232 units.
If you exclude shutdowns during the Covid pandemic these are the lowest figures for the British car industry since the Morris Minor and Ford Popular topped Britain’s production charts. In 1953 BMC was booming, taking some 40 per cent of the domestic market, while Britain was still one of the biggest exporters of motor vehicles in the world.
Fast forward to today and exports account for almost 80 per cent of the cars made in the UK and that’s one of the key reasons that production has plummeted. “Global economic uncertainty and trade protectionism have taken their toll on automotive production across the globe, with the UK no exception,” explains SMMT Chief Executive Mike Hawes. “The figures are not, therefore, unexpected but remain very disappointing.”
Meanwhile, Vauxhall’s decision to close its Luton van plant was a major factor in commercial vehicle production dropping by 45 per cent.
It’s not all doom and gloom, however. Production of electrified vehicles actually rose by 1.8 per cent and now make up more than 40 per cent of those manufactured in the UK. With a new government EV grant of £3,750 being introduced those numbers are likely to grow. A deal with the USA to reduce tariffs from 27.5 per cent to 10 per cent is expected to lift exports as well.
While there’s reason for some optimism Hawes believes it will be several years before the UK returns to pre-pandemic production levels where we made more than one million cars a year.
72 years ago BMC was a beacon of light for the British motor industry. Unfortunately, it was snuffed out in 1968 during the merger with Leyland and we all know how that ended up. We can only hope that the car industry of today can be more adaptive to the changing times and keep Britain’s manufacturing alive.
Hawes certainly thinks that’s the case: “There are foundations for a return to growth,” he says. “The industry is moving to the technologies that will be the future of mobility, our engineering excellence, highly-skilled workforce and global reputation are strengths, and we have an Industrial Strategy with advanced manufacturing and automotive at its core. With rapid delivery and the right conditions, UK Automotive can reverse the current decline and deliver the jobs, economic growth and decarbonisation that Britain needs.”
What are your thoughts on the UK’s car manufacturing industry? Let us know in the comments below.
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