UK Car Manufacturing Output Up 8% as EV Transition Gathers Pace
UK car manufacturing output increased by eight percent in 2025, according to figures from the Society of Motor Manufacturers and Traders, with electric vehicle production growing particularly strongly and now accounting for more than a fifth of total output from British plants. The turnaround from the challenging years of post-Brexit adjustment and the semiconductor shortages that had disrupted production schedules represents a significant improvement in the industry’s position, even as it navigates the largest technological transition in its history.
The major UK electric vehicle manufacturing hubs are centred on Nissan’s Sunderland plant — the largest car factory in the UK and one of Europe’s most productive — where investment in battery gigafactory capacity has supported the transition of the site to produce the fully electric next-generation Leaf and larger models. The Mini plant in Oxford has been converted to electric production following BMW’s decision to produce the electric Mini there rather than relocating to a different facility. Vauxhall’s Ellesmere Port plant, saved from closure by a combination of investment and government support, has been retooled for electric van production.
The battery supply chain remains a strategic vulnerability. UK plants currently rely predominantly on battery cells imported from Asia and continental Europe, and the absence of large-scale UK battery cell manufacturing capacity represents a medium-term risk to the industry’s competitiveness as European competitors build their domestic gigafactory networks. The government’s Automotive Transformation Fund has been supporting battery supply chain development, but the pace of progress has been slower than industry representatives believe is necessary.
Export performance has improved alongside output growth, with UK-built electric vehicles finding markets in Europe, North America and Asia. The zero-tariff access to the EU market under the Trade and Cooperation Agreement, contingent on meeting rules of origin requirements for battery content, has provided important market access that negotiators worked hard to secure.
