UK vehicle output slumps on weak overseas demand as uncertainty builds

27th Mar 2026 09:11

(Sharecast News) - The Society of Motor Manufacturers and Traders has called the latest decline in UK vehicle production as "extremely worrying", as weak overseas demand and the war in the Middle East clouding the outlook for the auto industry over the coming months.

UK factories produced 68,061 vehicles in February, the SMMT reported on Friday, a slight increase on the 67,415 units delivered in January but a 17.2% slump over February 2025, compared with the 13.6% year-on-year fall the month before.

Car output was 10.7% lower than a year ago at 65,885 units, while commercial vehicle volumes plummeted 74.0% to 2,176 units, with declines in both categories worsening from the -8.2% and -68.6% changes seen in January, respectively.

Export demand in markets outside Europe remained weak, the SMMT said, while model changeovers impacted output and commercial vehicle volumes continued to be affected by a major plant restructuring.

Vehicle exports, which accounted for 80% of total units produced, dropped 14.6% on last year to 54,446 units, while domestic deliveries slumped 26.0% to 13,615.

The EU, which accounted for 63.6% of car exports, imported 5.3% more cars from the UK than last year, but demand in the US, China and Japan fell 34.3%, 66.4% and 6.8% respectively.

"Another decline for UK vehicle production and exports is extremely worrying, given these figures pre-date the crisis in the Middle East. While the sector has made efforts to build resilience into its logistics and supply chains post Covid, the conflict adds further strain," said the SMMT's chief executive Mike Hawes.

"Now more than ever we must focus on our industrial competitiveness by driving down energy costs, backing our suppliers, supporting our domestic market and securing free and fair trade with Europe."