The production of cars in the UK has hit a 70-year low, with 717,371 cars manufactured in 2025, marking an 8% decrease from the previous year. Factors contributing to this decline include import tariffs imposed by President Trump and a cyber attack on Jaguar Land Rover.

This production level is the lowest since 1956 when the Morris Minor was a top-selling model, contrasting with the peak production in the 1970s when over 1.9 million cars were made annually. Despite the challenges faced, the Society of Motor Manufacturers and Traders (SMMT) is optimistic about the future, anticipating a production increase with the introduction of Nissan’s new electric Leaf model from its Sunderland plant.

Forecasts indicate that UK car production may reach 790,000 this year and potentially hit one million next year, including commercial vehicles. The UK’s car manufacturing landscape also includes plants like Mini’s Cowley factory, historically associated with the Morris Minor.

SMMT’s Chief Executive, Mike Hawes, acknowledged the difficulties of the past year but expressed hope for a more positive outlook in 2026. The domestic market experienced an 8.2% decline in car production to 161,545 units, while exports dropped by 7.9% to 555,826 units, with the EU being the largest export destination followed by the US, China, Turkey, and Japan. The UK government aims to increase car production to 1.3 million by 2035, requiring the construction of a new manufacturing facility.

Speculation suggests a Chinese automaker could be a potential partner for this venture, given the rising popularity of Chinese-made electric vehicles in the UK. Challenges, such as high energy costs, may need to be addressed before establishing a new plant. Recent global events, including President Trump’s trade threats and geopolitical tensions, have added complexity to the industry landscape.

Discussions have taken place between the car industry and the Ministry of Defence, exploring potential collaborations amid supply chain disruptions and growing defense spending. Flexibility in production to support national needs, as seen during the COVID-19 pandemic when Ford’s Dagenham plant produced ventilators, demonstrates the industry’s adaptability during crises.