Vehicle production in Britain declined significantly in 2025, marking what industry leaders have described as the most difficult year for the sector in a generation, amid the impact of United States tariffs and a major cyberattack on Jaguar Land Rover.
Data released on Thursday by the Society of Motor Manufacturers and Traders (SMMT) showed that UK factories produced a total of 764,715 vehicles in 2025, representing a 15.5 per cent drop compared with output recorded in 2024. Most of the vehicles were manufactured by plants owned by foreign automakers, including Japan’s Nissan and India-owned Jaguar Land Rover.
Commenting on the figures, SMMT Chief Executive, Mike Hawes, said the industry faced multiple pressures that combined to weaken production throughout the year. He attributed the decline to structural changes, new trade barriers, and the disruption caused by a cyberattack that halted operations at one of the country’s largest car manufacturers.
Hawes also noted that the transition towards cleaner energy and plant restructuring to support decarbonisation further constrained output during the period.
Despite the setbacks, the industry group expressed optimism about a turnaround, projecting that vehicle production could rebound by more than 10 per cent in 2026 to about 790,000 units, with the potential to reach one million vehicles by 2027.
The SMMT reported that the production of electric and hybrid vehicles continued to grow, with battery-electric, plug-in hybrid and hybrid models accounting for a record 41.7 per cent of total output in 2025, an increase of over eight per cent compared with the previous year.
Britain is pursuing one of the most ambitious vehicle electrification targets globally, with plans to end the sale of new petrol and diesel cars by 2030 and phase out hybrids by 2035.
The sector also faced external trade pressures following tariffs imposed by former US President Donald Trump, which affected exports to the United States. However, a US-UK trade agreement that took effect in June reduced tariffs on British car exports to 10 per cent from 27.5 per cent, though the concession applies to a capped volume of 100,000 vehicles annually.
Further strain came from a cyberattack on Jaguar Land Rover, owned by Tata Motors of India, which the company disclosed in September. The attack disrupted sales and production, forcing the automaker to suspend operations for more than a month and seek emergency funding. Production gradually resumed in October, but the disruption rippled through the supply chain, with labour unions warning that some suppliers faced the risk of collapse due to delayed payments.
