UK vehicle production rose 5.7% in August to 40,872 units, the second rise recorded in the year to date, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).
Car production provided the main source of growth, increasing 6.1% to 39,328 units – the strongest monthly increase since December 2025. This was largely driven by output for the domestic market, which rose 26%, while export production grew by 1.4%. Despite the modest increase, exports accounted for 77.1% of all cars produced in August. It’s also worth noting that August is typically a low output month due to variable summer shutdown schedules.
Despite the latest growth, UK vehicle output remains 7.1% lower year to date, with the SMMT that the industry continues to face significant headwinds around trade and manufacturing investment.
The EU’s Industrial Accelerator Act and ‘Made in Europe’ proposals, which would potentially render UK-made vehicles uncompetitive in their largest global market, pose an existential threat to homegrown manufacturers. In August, the EU remained the UK’s largest overseas market, accounting for 54.1% of vehicle exports. The industry is also seeking changes to the UK-EU Trade and Cooperation Agreement (TCA) rules of origin before new requirements take effect on 1 January 2027. The SMMT said tougher rules could result in additional tariffs on the majority of battery electric and plug-in hybrid vehicles, with a potential cost of at least £1.4bn.
Against this challenging backdrop, the SMMT highlighted more than £1bn of investment announced by specialist and mass-market vehicle manufacturers during September as a sign of continued confidence in the UK’s automotive manufacturing capabilities. The month saw Nissan announce a £170m investment in its Sunderland plant; McLaren announce a £450m investment in its Woking technology centre; and Bentley announce £350m in its Crewe facility.
The SMMT said the investments demonstrated international confidence in Britain’s engineering expertise, skilled workforce and advanced manufacturing capabilities, as countries compete to attract industrial investment.
Mike Hawes, SMMT Chief Executive, said: “August’s return to growth and this month’s £1bn-plus investment commitments show hard-won confidence in UK automotive manufacturing, confidence that must be protected, not put at risk. The UK and EU automotive industries are deeply integrated, so effectively excluding British-produced vehicles from their largest market would assure mutual damage. Both sides must urgently agree practical fixes to protect jobs, preserve shared competitiveness and keep the EU and UK industry moving.”
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