The UK automobile industry faces a "bleak year": production hits a nearly 70-year low, Jaguar Land Rover halts production to worsen the situation.

date
10:33 29/01/2026
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GMT Eight
Double impact from network attacks causing production paralysis at Jaguar Land Rover and increased tariffs from the US affecting domestic car companies leads to a severe blow to the British automotive manufacturing industry in 2025, with production plummeting to its lowest point in nearly 70 years.
The double impact of cyber attacks causing the paralysis of Jaguar Land Rover production and the US imposing tariffs impacting local car companies, has led to a major blow to the UK automotive manufacturing industry in 2025, with production dropping to the lowest point in nearly 70 years. Data from the Society of British Automobile Manufacturers and Traders shows that last year, UK car production fell by 8% year-on-year to 717,371 units, marking the worst record since 1956 - back when the main car models in the UK market were still the Morris Minor and Ford Popular. If commercial vehicles are included in the statistics, the performance of the UK automotive industry has fallen to a new low since 1952, with overall production plummeting by 16% year-on-year, partly due to Stellantis shutting down its Vauxhall van factory in Luton. The above data confirms that the UK automotive industry has had a dismal year, suffering from the aftermath of Brexit, semiconductor supply shortages, US tariff barriers, and a slowdown in the growth of the electric vehicle market in recent years. As the largest car manufacturer in the UK, Jaguar Land Rover was hit hard last year by a cyber attack, causing its factories to shut down completely for nearly six weeks, further exacerbating the industry's woes. However, the Society of British Automobile Manufacturers and Traders predicts that UK car production will achieve a rebound of over 10% in 2026, partly thanks to the launch of new fully electric models such as Nissan's new Ariya. Although the path to electrification in the UK remains challenging, the country continues to set high targets for car manufacturers in terms of electrification. While the EU has proposed to relax plans for zero emissions for new cars by 2035, the UK still requires local car companies to increase the sales share of electric vehicles year by year until achieving 100% electrified sales by 2035. It is worth noting that this goal poses a greater challenge for commercial vehicle manufacturers. The increasing popularity of Chinese car brands in the UK market has raised hopes that some Chinese car companies may be able to establish local production in the UK. It is reported that during his visit to China this week, UK Prime Minister Keir Starmer plans to discuss a proposal for cooperation with the Chinese side for Chery Auto to take over a factory of Jaguar Land Rover in the UK.