Earlier this week the UK Society of Motor Manufacturers reported UK cars built had declined by 11.9% in the first half of 2025 compared to last year, a result of challenging global markets & uncertainty over tariffs.
Some reports suggested this was the lowest output since 1953!
The graph below illustrates how UK manufacturing has flatlined since the early 1990’s compared to the stratospheric growth from China.
In the ‘80’s & ‘90’s western manufactures began entering into joint ventures with their Chinese counterparts in order to gain access to the China market but, playing the long game the Chinese government insisted foreign companies should hold no more than 50% of any joint venture & the transfer of technical knowledge started in earnest.
Today we are beginning to see (mainly electric) Chinese cars on UK streets which offer exceptional value for money & quality standards unforeseen a few years ago.
However that isn’t the whole story. If we look at UK sales value (adjusted for inflation) we see a steady increase (excluding the 2008 financial crisis & more notably Covid) to the present as UK manufacturers move up the value chain & producing more vehicles for the high end customer.
If UK makers continue this trend the future, despite the negative headlines is bright.
As usual #Innovation is the key.
Chris@amberhill.biz