UK vehicle production has fallen to its lowest level in over 70 years, with just over 417,000 cars and commercial vehicles built in the first half of 2025. This marks the weakest performance since 1953, excluding 2020 during the peak of the pandemic, and represents a 12% year-on-year decline. Several factors contributed to the sharp drop in output. Key among them was the imposition of new US tariffs on British car exports, which led to a temporary halt in shipments to America earlier this year. Major manufacturers, including Jaguar Land Rover and Bentley, paused exports in April, ahead of a new UK–US trade agreement that now allows a limited number of vehicles to enter the US at a reduced 10% tariff. Domestic production was further impacted by the closure of Stellantis’s Luton van plant in March, significantly affecting the commercial vehicle segment. At the same time, ongoing uncertainty around government incentives for electric vehicles, particularly the return of a grant scheme with unclear eligibility criteria, has made planning more difficult for manufacturers. Despite a slight rebound in June, when output rose modestly following the implementation of the new trade deal, the first half of 2025 remains one of the industry’s worst on record. The Society of Motor Manufacturers and Traders (SMMT) expects full-year output to reach around 755,000 units. While this would mark a small recovery in 2026, it remains well below the 2 million vehicles per year once seen as an industry goal. SMMT Chief Executive Mike Hawes called this period the sector’s “nadir”, stressing that recovery will depend on consistent policy support, renewed investment and new vehicle production coming to the UK. For more information: UK vehicle making hits lowest level since 1953, excluding Covid – BBC News