UK car production plunges after JLR cyber attack

(Sharecast News) - UK vehicle production fell sharply in October as the sector continued to reel from a major cyber incident, according to fresh figures from the Society of Motor Manufacturers and Traders (SMMT) on Friday. A total of 62,116 cars and commercial vehicles rolled off production lines during the month, down 30.9% year on year.

Car output dropped 23.8% to 59,010 units, reflecting the phased restart of operations at Jaguar Land Rover - Britain's largest automotive employer - following the production pause triggered by the attack.

Commercial vehicle manufacturing suffered an even steeper decline, plunging 74.9% to 3,106 units.

The SMMT said it marked the seventh consecutive monthly fall, driven largely by a significant manufacturer shifting operations to the North West.

The slump came despite a string of measures announced in the Chancellor's Budget aimed at bolstering manufacturing competitiveness.

They included £1.5bn of additional automotive transformation funding, changes to the vehicle excise duty (VED) expensive car supplement to reduce the number of electric vehicles subject to higher tax, and a £1.3bn boost to the Electric Car Grant.

Industry leaders also welcomed the government's decision to defer plans to end certain employee car ownership schemes, which the sector had warned could threaten 5,000 jobs and cost businesses £1bn annually.

However, concerns are mounting over the government's proposed "pay per mile" electric vehicle tax, which manufacturers fear could offset the benefits of the other support measures by dampening demand for zero-emission models at a critical moment for the industry's transition.

Mike Hawes, SMMT chief executive, warned that while the sector now has clearer strategic backing, the new levy risks undermining investment momentum.

"Another difficult month for UK vehicle production as the impact of the earlier cyber attack continued to be felt," he commented.

"Growth is on the horizon, however, and government has recognised the automotive industry as a pillar of national strategic importance, backing it with an industrial strategy and additional £1.5 billion to drive manufacturing competitiveness.

"Investment competitiveness also depends on a healthy domestic market, however, notably for EVs, and introducing a new electric-vehicle excise duty is the wrong measure at the wrong time.

"This new tax will undermine demand, so government must work with industry to reduce the cost of compliance and protect the UK's investment appeal."

Despite the current downturn, the sector was expecting output to recover.

Year-to-date production stood at 644,366 vehicles, 17% below the same period in 2024.

Independent forecasts suggested the industry could produce 828,000 units in 2026, buoyed by new electric models entering factories, with the potential to reach up to one million vehicles annually by the end of the decade.

Reporting by Josh White for Sharecast.com.