UK's Automotive Industry Warns of 1.3 Million Car Target Miss Due to Limited Capacity.
The Society of Motor Manufacturers and Traders (SMMT) has stated that the UK may struggle to meet its ambitious target of producing 1.3 million cars per year by 2035, citing a lack of sufficient manufacturing capacity. This warning comes as Labour's leader Keir Starmer prepares to embark on trade talks in China, where he aims to strengthen ties with Chinese manufacturers.
Industry experts believe that the UK needs a large new factory to meet its production targets, particularly in light of the growing demand for electric vehicles (EVs). In 2025, EV sales accounted for 41.7% of new cars produced in the UK, up from 37.4% the previous year. Mike Hawes, SMMT chief executive, noted that this growth is expected to continue in 2026.
Chinese manufacturers are seen as key players in meeting the UK's automotive production targets. The country has not imposed tariffs on imports from China, which has attracted significant investment from Chinese carmakers. Chery, for example, revealed last summer that it was considering building a plant in the UK as part of its "localisation" strategy.
Hawes highlighted the importance of investing in new models and manufacturing capacity to support the industry's growth. He noted that Chinese companies would be more likely to invest in a plant in Britain due to the country's reputation for free and fair trade, open markets, and welcoming investors.
The SMMT described 2025 as the "toughest year in a generation" for the automotive industry, following US trade tariffs, production disruptions at Nissan, and a cyber-attack on Jaguar Land Rover. Despite these challenges, Hawes remains optimistic about the industry's prospects, citing growing demand for EVs as a key driver of growth.
With China set to play an increasingly significant role in meeting the UK's automotive production targets, industry experts are watching closely to see whether a new factory will be built in Britain. The SMMT's warning serves as a reminder that the country needs to invest in its manufacturing capacity to support its ambitious industrial strategy.
The Society of Motor Manufacturers and Traders (SMMT) has stated that the UK may struggle to meet its ambitious target of producing 1.3 million cars per year by 2035, citing a lack of sufficient manufacturing capacity. This warning comes as Labour's leader Keir Starmer prepares to embark on trade talks in China, where he aims to strengthen ties with Chinese manufacturers.
Industry experts believe that the UK needs a large new factory to meet its production targets, particularly in light of the growing demand for electric vehicles (EVs). In 2025, EV sales accounted for 41.7% of new cars produced in the UK, up from 37.4% the previous year. Mike Hawes, SMMT chief executive, noted that this growth is expected to continue in 2026.
Chinese manufacturers are seen as key players in meeting the UK's automotive production targets. The country has not imposed tariffs on imports from China, which has attracted significant investment from Chinese carmakers. Chery, for example, revealed last summer that it was considering building a plant in the UK as part of its "localisation" strategy.
Hawes highlighted the importance of investing in new models and manufacturing capacity to support the industry's growth. He noted that Chinese companies would be more likely to invest in a plant in Britain due to the country's reputation for free and fair trade, open markets, and welcoming investors.
The SMMT described 2025 as the "toughest year in a generation" for the automotive industry, following US trade tariffs, production disruptions at Nissan, and a cyber-attack on Jaguar Land Rover. Despite these challenges, Hawes remains optimistic about the industry's prospects, citing growing demand for EVs as a key driver of growth.
With China set to play an increasingly significant role in meeting the UK's automotive production targets, industry experts are watching closely to see whether a new factory will be built in Britain. The SMMT's warning serves as a reminder that the country needs to invest in its manufacturing capacity to support its ambitious industrial strategy.
it seems like the UK is gonna struggle to meet its car production target 
1.3 million per year by 2035, which is a pretty big goal. I mean, with EV sales already making up like 41.7% of new cars sold in 2025, that's a lot of demand for electric vehicles 
and it's gonna take some serious investment to meet that. Maybe China can help 
I mean, 1.3 million cars per year is crazy! We're already seeing electric vehicles taking off and it's only gonna get bigger. They need a new factory ASAP or they'll be left behind. China's always been good at getting things done and if we can tap into their manufacturing power, that'd be amazing! 
it's like they're trying to make the entire country reliant on imports from china lol we r already struggling with ev sales not meeting projections 41.7% is still way below the target of 50% by 2035 
and chinese companies just r going to take advantage of our lack of manufacturing capacity 
it's like, what happened to the uk car industry btw? how did it even decline so much? anyway, i think keir starmer should focus on getting more factories built in britain instead of just talking trade with china 
I'm telling ya, something fishy is goin' on here... First of all, why does it have to be China? Can't they see we're already bein' taken over by them tech giants? 
And now Keir Starmer's off talkin' shop with the Chinese, just as the automotive industry is strugglin'? I mean, what's in it for us? 
. We can't keep relying on other countries to bail us out or drive our economies forward.
️. I'm just curious, what do you think will happen if they don't build any new factories? Will they just miss the target or what 
. Hawes' emphasis on investing in new models and manufacturing capacity couldn't be more timely. The SMMT's "toughest year in a generation" label for 2025 may seem like an understatement, but it highlights just how challenging the industry is facing 
. One can only hope that the UK's industrial strategy will prioritize investment in its own manufacturing capabilities rather than relying solely on imports from China 
.
they're saying Chinese manufacturers could help, but at the same time, it's like, what if they just decide not to come because of trade rules? 
and then there's this growth in electric vehicles which is awesome, but also means more pressure on factories... I don't know, man. It feels like there's a bit of a mess going on here... 
. And China's not helping either, they're already investing loads in their own plants 
.
. They need to get their act together and build some new factories ASAP 
. The growth of electric vehicle sales is a big deal, and they can't keep relying on Chinese manufacturers to save them 
. I hope they figure out a way to get their manufacturing capacity up to speed before it's too late 
. EVs are just a fad, mark my words 
. They'll come crawling back to normal cars once the novelty wears off. And what about the cost of building this new factory? Who's gonna foot the bill? The taxpayer, I reckon 
I mean, China's got some sweet deals going on and it's only natural that they'd want a piece of the UK market. But is it really worth the risk of bringing in foreign companies just for the sake of meeting production targets?