17:02 27-03-2026

UK car production down sharply in 2026 amid export and EV challenges

UK car production dropped 17.2% in February 2026, with exports falling 11.5% and EV output declining. Learn about the downturn, market impacts, and risks.

The British automotive industry has kicked off 2026 with a significant downturn. According to SMMT data reviewed by 32CARS journalists, car production fell by 17.2% in February to 68,061 units, marking one of the most notable declines in recent years.

A Sharp Drop in Production

Passenger car output dropped by 10.7% to 65,885 vehicles. However, the commercial vehicle segment took the hardest hit, with production plunging by 74% to just 2,176 units.

Even the domestic market failed to provide support. Production for UK buyers fell by 7.5%, while commercial vehicle output for the home market plummeted by 81.2%.

Exports Under Pressure

Despite the overall slump, exports remain a key driver, accounting for around 80% of production. Yet the picture is uneven.

Shipments to the EU rose by 5.3%, but other markets saw sharp declines: the US was down 34.3%, China dropped 66.4%, and Japan fell 6.8%.

As a result, total passenger car exports decreased by 11.5% to 53,140 vehicles.

Electric Vehicles and New Risks

Production of electrified vehicles, including EVs, PHEVs, and hybrids, also declined by 2.8% to 26,629 units. Nevertheless, their share reached 40.4%, highlighting the industry's structural shift.

Geopolitics and regulation are adding further pressure. New EU rules could complicate trade, while the Middle East crisis already threatens supply chains and logistics costs.

The British auto sector finds itself in a challenging phase: demand is unstable, exports are falling, and external risks are mounting. With current trends, 2026 could shape up as one of the most demanding years for the industry in the past decade.