UK car manufacturing stumbled at the start of the year, with production falling sharply in January as overseas demand softened in several of Britain’s most important export markets.

British factories produced 65,249 cars during the month, an 8.2% decline compared with a year earlier, according to new figures released on Friday by the Society of Motor Manufacturers and Traders (SMMT).

Exports, which account for the bulk of UK car output, were a major drag. Shipments overseas dropped 10.1% to 51,396 vehicles, reflecting weaker demand in regions including the European Union, the United States and China.

Mike Hawes, SMMT’s chief executive, said the figures underlined the urgency of protecting Britain’s trading relationships at a time when global competition is intensifying.

The downturn was even more pronounced when commercial vehicles were included. Total UK vehicle production fell 13.6% year-on-year to 67,415 units. Output of vans and trucks slumped 68.6% to just 2,166 units, extending a decline that has now lasted ten consecutive months following a major factory restructuring.

Despite the weak start to 2026, industry forecasts remain cautiously optimistic. An independent outlook cited by the SMMT continues to project that overall UK car production will recover and climb to around 790,000 units by 2026, suggesting the current slowdown may prove temporary rather than structural. Photo by Brian Snelson, Wikimedia commons.