July 2025 shows a complex landscape in UK car production with a rise in cars but a significant drop in commercial vehicle output.
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In July 2025, the UK car manufacturing scene took a positive turn, marking the second month in a row of increased production. But before we get too excited, it’s important to note that this growth came with a significant drop in commercial vehicle manufacturing.
The latest findings from the Society of Motor Manufacturers and Traders (SMMT) paint a complex picture for the automotive industry, which is still wrestling with various external challenges.
Production Figures Show a Mixed Bag
According to the SMMT, July saw the production of 69,127 cars, a solid 5.6% increase from the same month in 2024.
This boost is a hopeful sign that the car manufacturing sector is on the mend after facing some tough times. But here’s the kicker: overall production figures tell a more complicated story. The output of commercial vehicles took a nosedive, plummeting by a staggering 81.1%, which contributed to a year-on-year production decrease of 10.8%.
In total, only 72,006 vehicles rolled off the assembly lines.
So, what’s causing this steep decline in commercial vehicle production? It largely stems from major restructuring efforts within manufacturing plants, which have significantly altered the industry’s output capabilities. The SMMT’s analysis highlights that while the car segment appears to be bouncing back, the commercial vehicle sector is still in the thick of tough adjustments.
Industry Leaders Weigh In on Current Trends
Mike Hawes, Chief Executive of SMMT, didn’t hold back when discussing the current state of affairs in the automotive industry. He remarked, “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.” This statement captures the myriad challenges that manufacturers are facing, from unpredictable trade conditions to the urgent need for innovation in an increasingly competitive global market.
Yet, amidst these hurdles, Hawes pointed out that the ongoing growth in car production is a silver lining, showcasing the sector’s resilience. This is particularly noteworthy given the fierce competition from international markets, which continues to put pressure on UK manufacturers.
Insights on Exports and Domestic Production
When it comes to market performance, domestic car production surged by 13.6% in July, with exports making up a whopping 79.4% of total output, marking a 3.7% increase. Exports to the US, the largest single national market, saw a notable rise of 6.8%, nearing the 10,000-unit mark. There were also significant increases in exports to Turkey (up 35.4%) and Japan (up 14.9%).
However, it’s not all good news. The EU and China faced declines in exports, dropping by 7.9% and 7.1%, respectively. These mixed trends highlight the complexities of the market, where some regions are thriving while others grapple with serious challenges.
In summary, while the UK automotive sector is showing signs of recovery in car production, the sharp decline in commercial vehicle output raises concerns about sustainability and the long-term effects of recent restructuring efforts. Industry leaders are cautiously optimistic, predicting a potential 6.4% rise in total vehicle production by 2026 as the industry continues to navigate through these turbulent waters. What do you think the future holds for the automotive industry? Only time will tell.
