Society of Motor Producers and Merchants (SMMT) has reported a pointy contraction in UK automobile output initially of the yr, with whole manufacturing down 13.6 per cent in January as weaker export demand weighed closely on the sector.
A mixed 67,415 autos left British factories throughout the month, comprising 65,249 vehicles and a pair of,166 business autos. Automotive manufacturing declined by 8.2 per cent in contrast with January 2025, whereas business automobile output slumped by 68.6 per cent yr on yr.
The autumn was primarily pushed by decreased abroad demand. Though home urge for food for UK-built vehicles remained broadly steady, export volumes softened, notably in markets exterior Europe. Exports sometimes account for almost all of British automobile manufacturing, leaving producers uncovered to fluctuations in international demand and commerce situations.
America remained the second-largest vacation spot for UK-built vehicles after the European Union, accounting for 14.1 per cent of exports. Japan adopted with a 2.7 per cent share, whereas China and Turkey took 2.5 per cent and a pair of.4 per cent respectively.
Electrified automobile output additionally declined. Manufacturing of battery electrical autos (BEVs), plug-in hybrids and hybrid fashions fell by 10.6 per cent to 26,854 items, representing 41.2 per cent of whole automotive output. Regardless of the drop, electrified autos proceed to type a considerable share of UK manufacturing as producers transition in direction of zero-emission platforms.
The business physique mentioned the weak begin to the yr mirrored subdued international demand and underlined the significance of steady commerce relationships. Protectionist measures and “made in Europe” proposals in some markets have been cited as extra headwinds.
Mike Hawes, chief govt of the SMMT, described January’s figures as disappointing however pointed to anticipated restoration later within the yr as new electrical fashions enter manufacturing.
“Weak exports to markets past Europe amid delicate demand delivered a disappointing begin to the yr for UK automobile manufacturing,” he mentioned. “It reinforces the necessity for a forward-looking commerce agenda that secures current preferential entry and builds new ones with markets worldwide.”
The SMMT expects general automotive manufacturing to extend by greater than 10 per cent to round 790,000 items in 2026, with the potential to succeed in a million autos by 2027, supplied new mannequin launches proceed on schedule and funding situations stay supportive.
The outlook hinges on aggressive power prices, a powerful home market and focused provide chain help, the commerce physique mentioned, because the sector continues its capital-intensive shift in direction of electrification.
