- UK car production fell 17.7% in January, but EV and hybrid vehicle production rose 1.5%, reaching 42.2% of total output.
- EU EV sales surged 34%, overtaking diesel, while UK growth remains slower due to weak demand and shifting market dynamics.
- Despite challenges, the UK is making progress, and with the right investment, it could become a major player in the global EV market.
Overall UK car production falls, but EVs slowly continue to rise
The UK’s total vehicle production fell 17.7% in January compared to last year. Factories built 78,012 cars and commercial vehicles, down from the strong figures seen in early 2024, according to the SMMT.
However, there was one bright spot: electric and hybrid vehicle production increased by 1.5% to 30,028 units. These models now account for 42.2% of all cars built in the UK, the highest share since December 2022. Meanwhile, petrol and diesel car production declined, with exports and domestic sales both falling sharply.
This rise in EV production comes as Europe moves rapidly toward electrification. Recent data from the European Automobile Manufacturers’ Association (ACEA) shows that fully-electric car sales in the EU jumped 34% in January, even as the total car market shrank. EVs now make up 15% of all new car sales in Europe, overtaking diesel in market share.
But the UK’s EV growth remains slower. While factories are producing more electric models, weak demand in key markets—including the UK itself—is holding back expansion. Some brands, like Tesla, are even struggling, with UK sales dropping as Chinese automaker BYD gains ground.
Mike Hawes, SMMT Chief Executive, warns of the current production uncertainties:
“UK vehicle producers face a perfect storm of global trade uncertainty, challenging manufacturing conditions and a market transition which is proving tougher than expected. The sector is doing all it can to keep production plans on track but needs government to ensure automotive is at the heart of its forthcoming industrial and trade strategies with promised funding invested as soon as possible. Doing so will help ensure our competitiveness and safeguard the billions of pounds of investment, jobs and economic growth which is now at stake.”
With EU countries considering new purchase incentives, Britain may need to act fast. With the right investment and policies, the UK has the potential to become a major player in the global EV market. The road to full electrification may not be smooth, but the destination is clear—and the UK is on its way.
