In 2025, EV and hybrid vehicles made up a record 41% of UK automotive manufacturing, even as the overall sector declined by 15.5%, according to SMMT data.
UK production of EV and hybrid vehicles grew by 8.3% in 2025, defying the national trend of declining vehicle output, which fell by over 15%.
The Society of Motor Manufacturers and Traders (SMMT) reported that total UK vehicle production dropped 15.5% in 2025, with 764,715 commercial vehicles and cars produced. Of these, 298,813 were EV, plug-in hybrid, or hybrid cars, representing a record 41.7% share of total output.
The trade association expects UK car production to return to growth in 2026, with EV production playing a key role. The SMMT report highlighted the start of next-generation electric car production in Sunderland and the planned launch of seven new EV models across the UK as drivers of expected growth.
SMMT also noted significant public and private investment in the UK’s EV transition and infrastructure, including government commitments under the DRIVE35 funding and Industrial Strategy policies. Achieving the government’s target of producing 1.3 million vehicles annually by 2035 now depends on fulfilling these commitments.
“2025 was the toughest year in a generation for UK vehicle manufacturing,” said Mike Hawes, SMMT chief executive. He cited structural changes, new trade barriers, and a cyber attack that halted production at Jaguar-Land Rover as factors that constrained output, but expressed optimism for recovery in 2026.
Hawes added that the launch of new electric models and an improving economic outlook in key markets are positive signs. However, he emphasized that long-term growth depends on creating competitive conditions for investment, reducing energy costs, avoiding new trade barriers, and maintaining a healthy domestic market. He called for 2026 to be a year of delivery on the government’s Industrial and Trade strategies.
SMMT identified trade barriers, especially with the US, and ongoing restructuring for decarbonisation as major challenges for UK vehicle production in 2025. Looking ahead to 2026, it called for measures to lower energy costs, support the UK supply chain, and build a strong domestic market, all closely tied to the growth of EVs.
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