The number of vehicles built in the UK fell by 15% in 2025 as the industry dealt with the toughest year in a generation for manufacturing, according to a report.

The Society of Motor Manufacturers and Traders (SMMT) said 717,371 cars and 47,344 commercial vehicles left factories, down 8% and 62% respectively.

Issues affecting production included a cyber incident which halted production at JLR, new tariffs on trade across the Atlantic, and ongoing restructuring as plants shift to a decarbonised future, said the SMMT.

Over the year, car production for the UK market and exports both fell by around 8%.

Production of battery electric, plug-in hybrid and hybrid cars increased by 8.3% to just under 300,000, a record 41.7% share of output.

The figures are expected to increase this year with the planned launch of seven new EV models, the SMMT said.

Total car production is predicted to return to growth this year, with output set to rise by more than 10%, according to the report.

The SMMT’s data showed Europe received 56% of vehicles exported, followed by the US (15%), and China (6.3%).

Mike Hawes, SMMT chief executive, said: “2025 was the toughest year in a generation for UK vehicle manufacturing.

“Structural changes, new trade barriers, and a cyber attack that stopped production at one of the UK’s most important manufacturers combined to constrain output, but the outlook for 2026 is one of recovery.

“The launch of a raft of new, increasingly electric models and an improving economic outlook in key markets augur well.

“The key to long-term growth, however, is the creation of the right competitive conditions for investment, reduced energy costs, the avoidance of new trade barriers, and a healthy, sustainable domestic market.

“Government has set out how it will back the sector with its industrial and trade strategies, and 2026 must be a year of delivery.”