The latest SMMT data published yesterday shows UK car output rose for a second month in July, welcome news for a sector facing extraordinarily complex challenges. Manufacturers continue to navigate weak consumer confidence, suppressed markets and volatile trade conditions, all while investing billions in new technologies and plant upgrades, so last month’s growth is testament to their resilience.
Increased output was driven by both domestic and overseas demand, with transatlantic shipments rebounding as the landmark UK-US trade deal became operational. A steep drop in commercial vehicle output, meanwhile, down by more than -80%, is clearly a concern but not unexpected given the sector’s exceptional performance in July last year and substantial restructuring.
A slightly brighter picture for UK vehicle manufacturing is expected in 2026 as some investments come to fruition with, hopefully, a return to annual growth as new products on factory lines help to ensure the automotive industry remains a cornerstone of Britain’s economy, trade, employment and, indeed, decarbonisation. The UK’s longer term success in all these areas, however, depends on rapid delivery of the critical measures set out in the Industrial Strategy.
A cornerstone of that strategy is skills, as our sector, like many others in the UK, depends on a highly skilled and globally competitive workforce. Apprenticeships remain a critical talent pipeline, with automotive businesses taking on more than 3,200 new apprentices in the past two years – so as students across the UK received their A and T level results, it was timely that SMMT announced the four winning apprentices of our initiative with the British Motor Museum. The competition, offering the once-in-a-lifetime chance to drive a 1904 Thornycroft Tourer, provides a welcome opportunity to promote some of our sector’s brightest young recruits – while celebrating Britain’s illustrious automotive heritage which a new generation of talent is building upon.
Championing future automotive leaders is also the theme of another new initiative, Autocar’s Drivers of Change: New Talent awards, which SMMT is delighted to support. The awards shine a spotlight on apprentices and early-career professionals making a real impact across every part of the automotive sector – not just in vehicle manufacturing but the supply chain, aftermarket, retail, repair and maintenance, and more – all of which are pivotal to industry’s overall success.
The deadline for applications closes on 10 September so I urge you to nominate someone inspirational in your business today. Celebrating fresh voices, new skills and diverse experiences will help build an industry that continues to attract worldclass innovators and, in better reflecting the society we serve, is all the more positioned to thrive.
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