UK automotive production plunged in October, with combined car and commercial vehicle output falling 30.9% year-on-year to 62,116 units, according to new data released by the Society of Motor Manufacturers and Traders (SMMT). The sharp contraction reflects both the ongoing fallout from a major cyber incident that disrupted operations at Britain’s largest carmaker and wider structural pressures in the country’s auto sector.
Car production dropped 23.8% to 59,010 units, leaving factories 18,474 vehicles short of October 2024 levels. The decline marks the first month of a phased restart following the cyberattack that forced a temporary production halt earlier this autumn. Output for the domestic market fell 10.6% to 13,785 units, while exports slid 27.1% to 45,225. Shipments to the UK’s largest overseas markets, particularly the EU, US and Japan, recorded declines, though exports to Türkiye and China rose.
Commercial vehicle manufacturing endured an even steeper decline, tumbling 74.9% to just 3,106 units, its seventh consecutive monthly drop. The SMMT attributed the collapse primarily to a major manufacturer consolidating its operations in the North West, a move that has temporarily depressed national volumes.
Despite the grim headline figures, one bright spot was the continued rise of electrified vehicle production. Nearly half of all cars built in October, 46.2%, were battery-electric, plug-in hybrid or hybrid models. Electrified output rose 10.4% to 27,287 units, underscoring the UK industry’s pivot toward EV manufacturing even as domestic demand remains under pressure.
The production update comes two days after the UK government’s Autumn Budget, which included several measures welcomed by manufacturers. These included a £1.5 billion increase in Automotive Transformation Fund support, a deferral of regulations affecting employee car ownership schemes, and the launch of a consultation on a new British Industrial Competitiveness Scheme aimed at reducing industrial energy costs, long a sticking point for UK manufacturers competing with international rivals.
However, industry leaders warned that new tax measures could weaken the UK’s appeal just as policymakers are trying to attract major EV investment. The government confirmed plans for a new pay-per-mile electric vehicle tax (eVED), a move that could suppress EV demand at the very moment automakers are required to increase sales under the country’s Zero Emission Vehicle (ZEV) mandate.
“In introducing a new electric vehicle Excise Duty, the government risks undermining demand for the very vehicles manufacturers are compelled to sell,” said SMMT Chief Executive Mike Hawes. “This is the wrong measure at the wrong time.”
Year-to-date, UK factories have produced 644,366 vehicles, down 17% from the same period in 2024. Yet the latest independent outlook from Auto Analysis forecasts a return to growth in 2026, with output expected to reach 828,000 units as new electric models come online. Under favourable industrial conditions, UK production could climb toward 1 million units by 2030, the report suggests.
The SMMT cautioned that October’s data includes provisional figures from one manufacturer and may be revised. The next production release is scheduled for 19 December 2025.
By Charles Kennedy for Oilprice.com
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