With UK car plants suffering a go-slow, one industry chief has revealed some firms could switch production to much-needed defence work amid government commitments to increase military spending
The number of cars made in Britain has crashed to a 70-year low.
Trade body the Society of Motor Manufacturers and Traders said 717,371 cars rolled off the nation’s production lines in 2025. The 8% year-on-year fall was blamed in part on President Trump’s import tariffs and a devastating cyber attack on car giant Jaguar Land Rover.
It meant Britain built fewer cars than any time since 1956, when the Morris Minor was among the best sellers. At its peak in the 1970s, the UK was making more than 1.9million cars a year.
The SMMT is hopeful last year marked a low point, with production set to be boosted by Nissan’s new Sunderland-built electric Leaf model.
It forecast UK car production will reach 790,000 this year and, along with commercial vehicles, could reach one million next year. Among Britain’s other car plants is Mini’s Cowley factory, where the Morris Minor used to be made.
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“It has been a tough old year,” admitted Mike Hawes, SMMT chief executive, but added: “We are going into 2026 with more optimism.”
Car production for the UK market fell by 8.2% to 161,545, while those for export tumbled by 7.9% to 555,826 units. The EU accounts for nearly 57% of exports, followed by the US, China, Turkey and Japan. The government’s industrial strategy envisages the number of cars made in the UK reaching 1.3 million by 2035.
Mr Hawes said that, to reach that figure, a new car plant would need to be built.
There has been speculation for a while that a Chinese car maker is the most likely option, although that is far from certain. Sales of Chinese made electric cars have soared in the UK. Britain’s sky-high energy costs are thought to be among the obstacles to developing a new plant.
President’s Trump recent threat to impose fresh import tariffs over his campaign to seize control of Greenland showed it was “turbulent and volatile” for the UK car industry, Mr Hawes said.
It came as Mr Hawes revealed the car industry had held tentative discussions with the Ministry of Defence.
With car parts suppliers impacted by the slowdown, and the government committing to boosting defence spending amid the ongoing war between Russia and Ukraine and wider global tensions, it is believed factories here could switch some production. “It is something that we are looking at because the MoD is looking to expand capacity.” Mr Hawes said. He added that a “speed date” style event had taken place where officials spoke to smaller suppliers about possible options.
It would not be the first time car makers switched production in times of crisis, with Ford’s Dagenham plant making ventilators for Covid patients during the pandemic.
