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Commercial Vehicles & LCVs

Commercial vehicle production down 34.4% in July – the SMMT

Year to date, UK factories have turned out just under 450,000 cars and CVs, down 8.1% on the same period in 2025.

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Commercial vehicle production down 34.4% in July – the SMMT
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Commercial vehicle output fell sharply, down 34.4% to 1,888 units in July, with deliveries to UK customers and export markets down 49.6% and 18.5% respectively, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).

Year to date, UK factories have turned out just under 450,000 cars and CVs, down 8.1% on the same period in 2025, which the SMMT said reflects model changeovers, the closure of a plant last year, and continued trade and investment uncertainty.

Overall UK vehicle production fell 11.6% in July to 63,655 units.

The decline reflects weaker exports, down 15.9% to 47,377 units, as well as earlier scheduling of routine summer maintenance shutdowns at some plants.

Car production declined 10.6% to 61,767 units as a 9.3% rise in output for UK buyers failed to offset a 15.8% fall in exports.

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Shipments to all major markets were down, including the EU (15.2%), the US (17.7%), Turkey (18.5%), China (36.9%) and Japan (24.4%).

Output of fully electric and hybrid models recording the first monthly increase of the year, up 6.8% to 25,678 units.

Electrified models accounted for more than four in 10 cars built in July, up from around three in 10 a year ago.

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The latest independent forecast expects UK car and light vehicle output to remain broadly stable in 2026, at 740,000 units, before growth resumes in 2027.

Output could still reach one million units by the turn of the decade, but only if the UK addresses its competitiveness and secures fresh model investment, according to the SMMT.

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It added that the Government’s ZEV Mandate review is welcome, providing an opportunity to make meaningful reforms to the regulation that, with stronger market enablers, would help reduce the high cost of selling EVs in the UK, which is currently a major deterrent for global investors.

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Structural reform of industrial energy costs is also needed as, despite the forthcoming British Industrial Competitiveness Scheme (BICS), they will remain some 60% higher than Europe’s, the SMMT has said.

It added that the Government must address the double threat to UK-EU automotive trade posed by the European Commission’s ‘Made in the EU’ proposals, which could make UK-produced vehicles uncompetitive in European markets, as well as the tougher rules of origin requirements under the EU-UK TCA – the Brexit deal – which come into force in January.

The society said that unless urgent action is taken by both sides, there is a serious risk to cross-Channel auto supply chains and an €80bn-a-year trading relationship.

Mike Hawes, chief executive at the SMMT, said: “July’s figures underline the intense pressure under which UK vehicle manufacturers are currently operating.

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“Although the negative performance is exacerbated by shutdown calendarisation and model changeovers, it is being compounded by weaker overseas demand and fierce global competition.

“The rise in electrified vehicle production is encouraging, but long-term success depends on making the UK a more competitive place to make and sell vehicles.

“Meaningful and urgent reform of the ZEV Mandate, reduction of the UK’s sky-high energy costs and negotiations to safeguard free and fair trade with our largest and closest export market are essential to put UK automotive manufacturing back on a path to growth.”

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