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UK vehicle output hits lowest since 1950s as companies weigh defence shift

Sharp drop in production caused by fall-off in exports prompts carmakers to contemplate diversifying

The number of vehicles built in Britain last year fell to the lowest level since the early 1,950s as the industry’s trade body said car manufacturers were looking to diversify into the defence sector.

In 2025, 764,715 cars and vans were produced — 15.5 per cent lower than the year before and the worst year since 1952 — according to figures released by the Society of Motor Manufacturers and Traders on Thursday. 

The sharp drop in production was caused by a fall-off in exports, in part caused by US tariff turmoil, and a devastating cyber attack that shut down production at Jaguar Land Rover for more than a month. Production of commercial vehicles plunged 62 per cent after Stellantis shut down its van factory in Luton. 

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