Overview

• UK vehicle manufacturing fell 12% to 417,200 units in the first half of 2025, marking the weakest output outside Covid lockdowns since 1953.
• Carmakers paused shipments from April and output climbed 7% year on year in June following the introduction of a 100,000-unit tariff quota.
• Electric models accounted for a record 41.5% of production as the government reintroduced grants of up to £3,750 for EVs priced under £37,000.
• Industry forecasts for full-year output have been cut to 755,000 units, down from an earlier projection of 815,000, reflecting ongoing demand and trade uncertainties.
• Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, described H1 2025 as “one of the toughest periods” and said the sector is now at its nadir.