UK vehicle manufacturing has hit its lowest level since 1953 - excluding the COVID disruptions - presenting a critical pivot point, not just a downturn. However, we see this as a compelling opportunity for automotive employers and professionals alike to prepare for the industry’s next upswing.

The context, a momentary squeeze, not a shutdown

• In the first half of 2025, UK car and van production fell 12%, down to approximately 417,200 units, marking the lowest level since 1953 (excluding 2020).
• May 2025 alone saw output plunge 32.8% year-on-year, with the year-to-date total just 348,226 units, again hitting its lowest since 1953.

What's driving the decline and why it won’t last

This downturn stems from several converging factors:

• Rising US tariffs (25%) disrupted key export streams, notably to the US market.
• Plant closures, like Stellantis's Vauxhall Luton, hit commercial vehicle output particularly hard (down 45 %).
• Yet recent developments, including a new US–UK trade deal slashing tariffs to 10% on the first 100,000 vehicles annually, offer an encouraging recovery signal.

Why we see the light at the end of the tunnel

This isn’t just a temporary lull, it’s a realignment. Here’s why the rebound will require and reward smart B2B recruitment:

1. EV transition creates demand for new skills
   The move to electric vehicle manufacturing - batteries, software, new assembly techniques - means employers must tap specialists in powertrain engineering, EV integration, and digital systems.
2. Recovery hiring will be strategic and targeted
   As trade conditions improve, manufacturers need high-calibre talent to restart, scale, and sustain operations efficiently perfect for the bespoke executive search and talent engagement that we specialise in.
3. Government support boosts momentum
   With an industrial strategy focusing on energy costs and EV incentives, the sector is poised to accelerate production, but success will depend on having the right people in place fast.

Working together to shape the industry’s next chapter

For Manufacturers:
Now is the moment to take stock, plan ahead, and think about the skills your teams will need in the coming years, especially as EV production and advanced manufacturing gather pace. We can work with you to identify and connect with the right people so you’re ready when the upturn arrives.

For Automotive Professionals:
If you’re in the industry, this is a good time to reflect on your career path, explore training opportunities, and keep your skills future-ready. We’re here to have open conversations, share insights, and connect you with opportunities that align with where the sector is heading.

Looking ahead

The numbers may show a low point for UK vehicle manufacturing, but they don’t tell the whole story. Behind the headlines are thousands of skilled people, innovative companies, and fresh ideas ready to drive the next era of mobility. We believe this moment is less an ending and more a reset, an opportunity for everyone in the automotive community to shape what comes next. Whether you’re building teams, developing new technologies, or reimagining your career, the road ahead is one we travel together.

If you’d like to explore how your business can navigate today’s challenges and prepare for tomorrow’s opportunities, our Associate Director, Robert Wigley, would be happy to talk. He brings a wealth of industry insight and a collaborative approach to finding the right solutions. You can reach out to Robert directly at robert.wigley@technical-network.co.uk