Market News

Car production in the UK rose for a second successive month in July, but a fall in commercial vehicles saw overall numbers down on the previous year.

Figures from the Society of Motor Manufacturers and Traders (SMMT) showed 69,127 cars were made during the month – a rise of 5.6% on the same period in 2024.

But commercial vehicle output fell by 81.1% compared to 12 months ago, which saw the highest figures for 17 years, bringing the total production number down by 10.8% year on year to 72,006.

SMMT analysis said the drop in commercial vehicles followed plant restructuring.

Chief executive Mike Hawes said: “It remains a turbulent time for automotive manufacturing, with consumer confidence weak, trade flows volatile and massive investment in new technologies underway both here and abroad.

“Given this backdrop, another month of growing car output is good news – signalling the sector’s underlying resilience in the face of intense global competition.”

The latest figures mean total vehicle production has fallen 11.7% in the first seven months of the year compared to 2024, although the SMMT said the latest forecast predicts a ride of 6.4% in 2026.

Car production for domestic markets rose by 13.6% in July while exports – which accounted for 79.4% of output – were up by 3.7%.

After three months of falling numbers, exports to the largest single national market in the US increased by 6.8% to almost 10,000 units while cars for Turkey (35.4%) and Japan (14.9%) also saw significant increases.

Exports to the EU fell by 7.9% and to China by 7.1%.