UK vehicle output falls 7.5% in first half, SMMT says

The Society of Motor Manufacturers and Traders says UK vehicle production fell 7.5% in the first half of 2026, with factories building 385,979 cars and commercial vehicles.

The trade body said output was steadier in the second quarter, down 128 vehicles or 0.1% year on year. It said exports strengthened over the quarter while car production returned to marginal growth.

Exports remain central

SMMT said 294,222 vehicles were built for export in the first six months, down 5.6% on the same period in 2025. Domestic-market production fell 13.2% to 91,757 vehicles, it said.

Exports accounted for 76.2% of all vehicles built in the half-year, according to the trade body. It said the EU took 58.3% of car shipments, while the United States and China were the next two largest markets.

SMMT said electrified vehicles made up around four in 10 cars built during the period, although their output was 8.6% lower than a year earlier amid model changes at manufacturers.

Investment and the Wales context

The body said its independent outlook expects UK car and light-vehicle output to be broadly flat at 740,000 this year before growth in 2027. It called for action on industrial energy costs, market regulation and EU trade arrangements.

The figures are UK-wide and the release gives no Wales-specific production total, so they do not establish a distinct effect in Wales. They provide national industry context for Welsh readers following automotive supply chains, vehicle markets and investment conditions.