UK car output hit by tariffs, cyber attack: industry body

Britain's vehicle production tumbled as 2025 became the sector's "toughest year in a generation" amid US tariffs and a cyberattack on Jaguar Land Rover, an industry group said Thursday.

Factories producing mainly foreign-owned brands, including Japanese giant Nissan and Indian-owned Jaguar Land Rover, turned out a total 764,715 vehicles, down 15.5 percent on 2024, said the Society of Motor Manufacturers and Traders.

"2025 was the toughest year in a generation for UK vehicle manufacturing," said SMMT chief executive Mike Hawes.

"Structural changes, new trade barriers, and a cyberattack that stopped production at one of the UK's most important manufacturers combined to constrain output," he said.

He added that output was also hit by "ongoing restructuring as plants shift to a decarbonised future".

Despite the challenges, the SMMT said "the outlook for 2026 is one of recovery." 

Output is forecast to rise by more than 10 percent this year to 790,000 units, with the potential to reach one million units by 2027.

Production of battery electric, plug-in hybrid and hybrid vehicles together rose by over eight percent in 2025 to a record 41.7 percent share of output. 

Britain has a target to ban the sale of new combustion-engine vehicles as early as 2030, and hybrids in 2035, making it one of the most ambitious countries in the transition to electric vehicles.

Last year, the UK auto sector was roiled by US President Donald Trump's tariffs that impacted exports to the world's biggest economy.

A US-UK trade agreement, which entered into force in June, reduced the tariff on British car exports to 10 percent from 27.5 percent, on a limit of 100,000 vehicles annually.

Adding to pressure on the industry, Jaguar Land Rover, owned by India's Tata Motors, revealed in September that it had been targetted by hackers, severely disrupting sales and production and forcing the company to seek emergency funding.

JLR froze production for more than one month due to the attack, gradually resuming output in October.

The incident caused widespread disruption across its supply chain, with unions warning some suppliers had been at risk of collapse owing to delayed payments.