Auto Finance Sponsored by Auto Finance News UK vehicle production falls back in August Published: 26th September 2025 Share UK car and commercial vehicle output slipped sharply in August, breaking a two-month run of growth, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT). A total of 37,072 cars were built in the month, down -10.2% on the same period last year, as factories paused for routine maintenance and retooling during the industry’s traditional “summer shutdown.” Including vans, trucks and buses, combined UK vehicle production declined -18.2% to 38,693 units – the weakest August since 1956. The fall comes against a backdrop of soft demand in the EU, rising costs, ongoing model changeovers and sluggish UK economic growth. Industry leaders also warned that September’s figures are likely to be affected by the recent cyberattack on Britain’s biggest automotive employer. Despite the decline in overall car output, there was strong growth in electrified models. Hybrid, plug-in hybrid and battery-electric vehicle production surged 40.9% to 16,830 units, representing 45.4% of total output – the second-highest monthly share on record. In the year to date, more than 200,000 electrified cars have rolled off UK production lines, up 3.7% on 2024. Exports, which account for more than four in five UK-built cars, fell -14.2% to 29,910 units. Production for the domestic market, however, rose 11.5% to 7,162 units. The commercial vehicle sector endured the steepest drop, with output tumbling -73.2% to 1,621 units due to consolidation at a major manufacturer. Year-to-date CV production is now down -54.4% to 35,922 units. Mike Hawes, SMMT Chief Executive, said: “August is always a low-volume month due to planned summer maintenance, but the focus is now on September’s performance, and the likely impact of the cyberattack at Britain’s biggest automotive employer. Given this incident and the industry’s importance to jobs, growth and trade, rapid delivery of the Industrial Strategy and Drive35 is now critical. The sector is resilient, but SMMT is engaged with members and the government to understand what additional supportive measures may be needed.” The figures follow the publication of SMMT’s latest trade report Unmarked Routes: Britain’s Pathway to Stronger Automotive Trade, which highlights the industry’s continued importance as a global exporter. The UK automotive sector is set to generate more than £110 billion in trade for a third consecutive year, supporting almost 800,000 jobs, turning over £92 billion annually, and investing around £5 billion in R&D. Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories NewsBusinesses becoming more optimistic about fleet growth, research shows NewsStellantis Pro One reports strong Q1 with 7% global growth NewsUK van market falls 3.4% as EV demand falters Auto Finance