UK vehicle production drops sharply in January

26th Feb 2026 15:38

(Sharecast News) - UK vehicle production dropped sharply in January, according to figures from the Society of Motor Manufacturers and Traders (SMMT) on Friday, amid weak demand across key global markets.

The UK manufactured 65,249 cars last month, representing an 8.2% decline compared with December, while 2,166 commercial vehicles were produced, down 68.6% following a major plant restructuring, the SMMT said.

Production for overseas buyers, which accounted for more than three quarters of vehicle output, was significantly weaker, with cars shipments dropping 10.1% and commercial vehicle shipments sinking 75% over the month.

Car manufacturing for the UK market was more or less flat, down just 0.6% at 13,964, while domestic commercial vehicle production sank 58.4% to 2,649.

Mike Hawes, the chief executive of the SMMT, said it was a "disappointing start" to the year for the industry.

"It reinforces the need for a forward-looking trade agenda that secures existing preferential access - notably with the biggest market on our doorstep, given protectionist 'Made in Europe' proposals - and builds new ones with markets worldwide," Hawes said.

"That must be combined with more competitive conditions for UK manufacturing - lower energy costs, a strong and sustainable domestic market, and specific support for our supply chain."

Nevertheless, volumes are set to increase in 2026 as next-generation electric vehicle production ramps up in Sunderland and with a further seven new EV models planned for rollout across the UK. Overall, car production is expected to rise by more than 10% to 790,000 units this year.