UK vehicle production falls 13.6% in January amid weak global demand

- Exports slide 10.1% as softer overseas demand weighs on output, with EU remaining largest market

ISTANBUL

Vehicle production in the UK fell 13.6% year-on-year in January as weakening global demand weighed on output, according to data released by the Society of Motor Manufacturers and Traders (SMMT) on Friday.

Total vehicle production declined to 67,415 units during the month. Exports also dropped, slipping 10.1% compared with the same period last year, reflecting softer demand across key international markets.

Production for overseas markets accounted for 77.8% of total output, underlining the industry’s heavy reliance on exports.

The EU remained the UK’s largest export destination, taking 62.5% of total car shipments and 94% of commercial vehicle exports. The US ranked as the second-largest market with a 14.1% share, followed by Japan (2.7%), China (2.5%), and Türkiye (2.4%).

SMMT CEO Mike Hawes said the figures highlight the urgent challenges facing the sector. He noted that weaker demand outside Europe and a sharp contraction in commercial vehicle production following major restructuring efforts had dragged down overall output.

Despite these headwinds, Hawes emphasized that with more than three-quarters of production destined for export markets, the industry remains highly dependent on overseas demand, making stable, competitive, and forward-looking trade relationships increasingly critical.