UK Car Exports Hold Up Despite 7.5% Production Slide in First Half of 2026

UK vehicle production fell 7.5% to 385,979 units in the first half of 2026, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). But look closer at the numbers, and it’s clear the export side of the industry is holding up far better than the domestic market.

Exports Outperforming the Home Market

Of the vehicles built in the first half of the year, 294,222 were exported — a decline of 5.6% year-on-year. That’s a soft landing compared with the domestic market, where production for UK buyers dropped 13.2% to just 91,757 units.

Exports now account for 76.2% of everything built on UK production lines, underlining just how dependent the industry is on overseas demand.

There were also signs of stabilisation heading into the summer. Second-quarter output was nearly flat, down only 0.1% year-on-year, and June alone saw 68,200 units roll off production lines, a modest 1.2% dip compared with the same month last year.

Where the Cars Are Going

The European Union remains by far the largest destination for UK-built vehicles, taking 58.3% of all exports — 166,801 units — and actually growing 3.4% on the year.

Other major markets told a different story:

• United States: 45,162 units (15.8% of exports), down 4.6%
• China: 12,323 units, down a sharp 44.7%

The pullback in Chinese demand in particular reflects a broader cooling in that market, while European buyers continued to lean on UK-built stock.

Electrified vehicles — battery-electric, plug-in hybrid, and hybrid models combined — made up roughly 40% of everything produced, though that share was itself down 8.6% on the previous year as the wider market adjusted.

Industry Reaction

SMMT chief executive Mike Hawes struck a note of cautious optimism, telling the industry that “decline is not inevitable” and pointing to energy costs, market regulation, and international trading arrangements as the key levers that could help the sector return to growth.

The numbers matter well beyond the factory floor. UK automotive manufacturing contributes more than £85 billion in annual turnover and directly employs around 188,000 people. SMMT’s current forecast puts full-year 2026 production at around 740,000 units, with a return to growth pencilled in for 2027.

What This Means for Exporters

For those of us moving vehicles out of the UK day to day, these figures reflect what we’re seeing on the ground: steady, resilient demand from European buyers, a softer but still meaningful US market, and a noticeably quieter China. If you’re planning an export and want an up-to-date read on shipping routes, lead times, or demand in a specific region, get in touch with our team.

Image: Georgia Highway at Southampton Docks by Ronald Saunders, Wikimedia Commons (CC BY-SA 2.0), resized.