The UK automotive sector suffered a sharp downturn in October, with total vehicle production falling 30.9% year-over-year to 62,116 units, according to fresh data from the Society of Motor Manufacturers and Traders (SMMT). The steep decline reflects ongoing disruptions from a major cyberattack affecting the country’s largest carmaker, as well as broader challenges facing UK exporters. 

Car Manufacturing Hit by Cyber Incident and Export Slowdown 

Car production slid 23.8% to 59,010 units, leaving factories nearly 18,500 vehicles behind October 2024 output. October marked the first month of a gradual restart following the cyberattack earlier in the autumn, which forced operations to halt temporarily. 

Breakdown of car production: 

• Domestic market: down 10.6% to 13,785 units 

• Exports: down 27.1% to 45,225 units 

Key export destinations including the EU, U.S., and Japan all reported lower shipments, although exports to Türkiye and China saw increases. 

Commercial Vehicle Output Collapses Nearly 75% 

Manufacturing of commercial vehicles fell even more sharply, dropping 74.9% to just 3,106 units—the seventh consecutive monthly downturn. The SMMT attributed the slump to a major manufacturer consolidating operations in the North West, significantly reducing national output during the transition period. 

EV Production Continues to Grow Despite Industry Struggles 

One positive sign was the continued growth in electrified vehicle production. 

• 46.2% of all cars built in October were battery-electric, plug-in hybrid, or hybrid models. 

• Electrified output increased 10.4% to 27,287 units. 

This highlights the UK sector’s ongoing shift towards EV manufacturing even as overall demand in the domestic market remains subdued. 

Government Budget Offers Support — But New EV Tax Raises Concerns 

The production report follows the UK government’s Autumn Budget, which included initiatives welcomed by manufacturers, such as: 

• £1.5 billion boost to the Automotive Transformation Fund 

• Delays to regulations impacting employee car ownership schemes 

• A consultation on a British Industrial Competitiveness Scheme aimed at lowering industrial energy costs 

However, industry leaders warned that other policies could undermine progress—specifically, the introduction of a new pay-per-mile electric vehicle tax (eVED). This comes at a time when automakers must increase EV sales to meet the Zero Emission Vehicle (ZEV) mandate. 

SMMT Chief Executive Mike Hawes cautioned: 

“In introducing a new electric vehicle Excise Duty, the government risks undermining demand for the very vehicles manufacturers are compelled to sell. This is the wrong measure at the wrong time.” 

Industry Outlook: Recovery Expected in 2026 

So far in 2025, UK factories have produced 644,366 vehicles, representing a 17% decline compared to the same period in 2024. Despite the challenging year, forecasts remain optimistic: 

• Auto Analysis predicts a rebound in 2026, with production expected to reach 828,000 units. 

• Under strong industrial conditions, output could climb toward 1 million units by 2030. 

The SMMT noted that October’s report includes provisional data from one manufacturer, with updated figures due on 19 December 2025.