UK vehicle production rebounds 36% in September

SMMT warns regulatory pressures jeopardise recovery

UK vehicle manufacturing rebounded sharply in September 2026, with total production rising 36.3 per cent year-on-year to 74,031 units, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

Car manufacturing led the recovery, climbing 38.6 per cent to 70,831 units, marking the strongest September output for UK car plants since 2023. This significant increase largely reflects recovery from an unprecedented cyber incident that caused major production stoppages across key domestic sites during the same period last year. Meanwhile, commercial vehicle (CV) output saw a marginal decline of 0.9 per cent, despite a 1.6 per cent rise in exports.

Electrified models continued to drive growth, expanding 22.5 per cent to represent 42.3 per cent of total car output and 70.1 per cent of exports. International demand remained crucial overall, with exports accounting for 76.7 per cent of all cars built. Shipments to the EU grew 12.7 per cent (taking a 57.5 per cent share of exports), while exports to the US surged 234.8 per cent and China jumped 357.7 per cent from low bases.

Despite September’s surge, year-to-date production remains down 3.0 per cent at 564,537 units, with full-year output revised down to 731,000 light vehicles. The SMMT warns that recovery heading into 2027 is severely threatened by domestic regulations and European trade risks.

At home, the SMMT is urging immediate, substantial reform of the Zero Emission Vehicle (ZEV) Mandate, arguing that unrealistic sales targets are draining resources and eroding profitability. Globally, proposed European “Made in EU” rules and upcoming 2027 Brexit rules-of-origin tariffs pose a shared £1.4 billion threat to UK-EU EV trade.

Mike Hawes, SMMT chief executive, warned that while the monthly rebound is welcome, substantive ZEV Mandate reform and pragmatic trade solutions are urgently required to safeguard UK manufacturing investment and the 188,000 British jobs dependent on the sector. “September’s rebound is welcome, but comparison with last year’s disruption masks the pressures on UK manufacturing. Protectionism is becoming a feature of global trade, and that threatens not just UK automotive as an export-led sector, but the health of industries overseas as well.

“Pragmatic discussions with trade partners are required but Government can immediately help the industry with an urgent conclusion to the ZEV Mandate review. Mandate targets are running ahead of demand and draining resources required for British factories and jobs.

“Substantive changes – not marginal adjustments – are needed to ensure decarbonisation does not come at the cost of reindustrialisation.”