British car manufacturers produced considerably fewer vehicles in the first six months of this year, with figures from the Society of Motor Manufacturers and Traders (SMMT) showing a 7.5 per cent fall between January and July compared to the same period in 2025. The SMMT, the industry's largest trade group, attributed the decline to tariffs and domestic policy decisions.
A total of 385,979 vehicles rolled off production lines in the first half of 2026, marking a decrease of 31,000 vehicles year-on-year. The drop was more pronounced in cars destined for the UK's home market, with domestic output falling by 13 per cent. Export production also saw a decline of 5.6 per cent over the first half, although exports picked up by 3.9 per cent in the second quarter compared to the first three months of 2026.
Mike Hawes, SMMT chief executive, stated that global vehicle production remains under intense pressure, with the UK being no exception. He cited global market weakness, trade pressures, and uncompetitive costs as contributing factors. The SMMT also highlighted the need for action on high industrial energy prices and the government's zero-emissions vehicle mandate, which requires a growing proportion of electric cars to be sold each year.
The SMMT warned that reform to the zero-emissions vehicle policy is "vital," suggesting that current regulation is ahead of demand, making the cost of selling in the UK untenable and undermining local manufacturing investment. The lobby group also mentioned that protectionist measures from the European Union, such as rules of origin and 'Made in Europe' provisions, risk undercutting UK exporters.