UK vehicle production falls again as weak global demand hits output

UK vehicle production has fallen sharply again in early 2026, with weak global demand, falling exports and ongoing industry disruption continuing to hit factory output.

Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show total UK vehicle production dropped by 17.2% in February, with just 68,061 units leaving production lines.

Commercial vehicle output plunges

The most dramatic difference came in the commercial vehicle (CV) sector — a key area for the MOT trade.

• CV production fell by a huge 74.0% year-on-year
• Just 2,176 vans and commercial vehicles were built in February

The decline has been linked to major plant restructuring, alongside continued weak demand in export markets.

For comparison, car production — while also down — fell at a slower rate of 10.7% to 65,885 units.

Export demand continues to weaken

The downturn is being driven largely by falling demand overseas, with exports still accounting for around 80% of UK vehicle production.

Key global markets have seen significant drops:

• US demand down more than 34%
• China demand down more than 66%
• Japan also declining

While exports to the EU remain relatively stable — and even saw slight growth — the overall global picture remains weak.

Domestic market also under pressure

It’s not just exports causing concern.

Production for the UK market also declined:

• Car output for UK buyers down 7.5%
• CV production for the domestic market down over 80%

This reflects ongoing economic uncertainty, with businesses holding back on fleet investment.

Electrified vehicle production dips

Despite the push towards electrification, production of battery electric, plug-in hybrid and hybrid vehicles also fell slightly by 2.8%.

However, electrified models still made up a growing share of output, accounting for around 40% of all cars built.

Industry warns of “extremely worrying” trend

Industry leaders have described the latest figures as “extremely worrying”, particularly as they come before the full impact of wider global instability is felt.

Ongoing challenges facing the sector include:

• Weak global demand
• Supply chain pressures
• Rising geopolitical tensions
• Potential EU trade rule changes impacting UK-built vehicles

The SMMT has warned that proposed “Made in the EU” rules could further disrupt a trading relationship worth around £70 billion annually.

What it means for the MOT sector

For MOT testers and garages, the continued slowdown in vehicle production — particularly in the commercial vehicle sector — could have longer-term implications.

Fewer new vehicles entering the parc may:

• Slow fleet renewal cycles
• Extend the lifespan of older vans
• Increase demand for maintenance and repair work

Outlook remains uncertain

With production falling for consecutive months and global demand still weak, the UK automotive sector faces a challenging road ahead.

While manufacturers continue to invest in electrification and new models, the immediate outlook is dominated by uncertainty, falling output and increasing pressure on the industry.