Britain’s car manufacturing output has plummeted to its lowest annual level in over 70 years, excluding the Covid-19 crisis, amid warnings from industry leaders that the country risks losing its position as a global automotive player. New data from the Society of Motor Manufacturers and Traders (SMMT) revealed that only 775,000 vehicles were built in the UK last year, a sharp decline driven by plant closures, weak investment, and ongoing supply chain pressures.
Global competition and Brexit costs bite
Industry experts have pointed to a confluence of structural challenges facing the British car sector, including rising competition from overseas, high energy costs, and the lingering impact of Brexit. The UK’s departure from the EU has complicated trade flows and introduced regulatory friction, discouraging some manufacturers from expanding local operations. The recent closure of Honda’s Swindon plant and the scaling back of production by other firms has further weakened domestic output.
Shift to electric lags behind EU and Asia
Britain’s transition to electric vehicle (EV) production remains sluggish compared to rivals in the EU and East Asia. While the government has pledged billions in green investment, the UK still lacks sufficient battery manufacturing capacity to support large-scale EV assembly. The collapse of Britishvolt in 2023 and delays in securing new gigafactory projects have left a gap that other nations have rapidly moved to fill.
Industry urges government action
The SMMT has called on the government to accelerate plans for investment incentives, infrastructure upgrades, and export support to prevent further erosion of the sector. Chief Executive Mike Hawes warned that “the UK cannot afford to fall behind” and stressed the need for a cohesive industrial strategy to restore confidence and capacity. Labour shortages and high logistics costs were also cited as compounding issues.
Legacy at risk amid global transformation
The UK car industry, once a symbol of post-war manufacturing strength, is at a turning point. With global automotive firms increasingly relocating to jurisdictions with stronger policy frameworks and subsidies, Britain’s traditional advantages in engineering and innovation risk being overshadowed. Without immediate action, analysts caution that the country’s share of global car production could continue to shrink.
REFH – Newshub, 24 July 2025
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