UK car production rose for the second consecutive month in July, up 5.6 per cent to 69,127 units, according to the latest figures published by the Society of Motor Manufacturers and Traders.

Commercial vehicle output, however, fell by 81.1 per cent, reflecting plant restructuring and a bumper month last year, when the sector recorded the best July in 17 years which, when combined, dragged total vehicle production down 10.8 per cent to 72,006 units.

Car production for domestic and export markets improved, rising 13.6 per cent and 3.7 per cent respectively with overseas markets taking by far the majority (79.4 per cent) of output.

The EU remained the main destination for UK car exports (45.6 per cent share), followed by the US (18.1 per cent) China (7.7 per cent), Turkey (7.2 per cent) and Japan (3.4 per cent).

While shipments to the EU and China fell by 7.9 per cent and 7.1 per cent. respectively, output for Turkey and Japan grew 35.4 per cent and 14.9 per cent. Exports to the US, meanwhile, rose by 6.8 per cent to almost 10,000 units, reversing three straight months of decline.

The US remains the largest single national market for British built cars, underscoring the importance of the UK-US trade deal, and July's performance illustrates the impact of this deal which came into force at the end of June. Australia, Canada, Korea, the UAE and Switzerland rounded off the top 10 export markets, although combined they represented just six per cent of all shipments in the month.

In the year to date, total vehicle output is down 11.7 per cent with just shy of half a million units (489,238) produced.

However, the latest independent production outlook for light vehicles anticipates growth to return in 2026, with output expected to rise 6.4 per cent to 803,000 units.

Rapid implementation of the new Industrial Strategy - including the dedicated automotive sector programme DRIVE35 - plus measures to reduce energy costs, accelerate infrastructure rollout and address skills gaps should help improve the UK's competitiveness and ability to attract investment.

Mike Hawes, SMMT chief executive, said:"It remains a turbulent time for automotive manufacturing, with consumer confidence weak, trade flows volatile and massive investment in new technologies underway both here and abroad. Given this backdrop, another month of growing car output is good news - signalling the sector's underlying resilience in the face of intense global competition. To unlock sustained growth, however, government strategies must become tangible actions as a thriving automotive sector can support well paid jobs and economic development across the UK."