Manufacturing strain grows as UK automotive navigates JLR disruption and EV transition

Commenting on the latest SMMT UK vehicle manufacturing data, Emily Sawicz, Director and Industrials Senior Analyst at RSM UK, said: “UK vehicle production fell 30.9% in October, with 62,116 cars and commercial vehicles leaving factories, as the ongoing impact of recent disruption at Jaguar Land Rover (JLR) continued to weigh heavily on national output.”

She continued: “At the same time, parts of the traditional manufacturing base continue to come under pressure. The announcement by Japanese motor bearing manufacturer NSK that it will close two UK sites highlights how difficult it is to operate profitable, energy-intensive facilities in the current environment. This reinforces the importance of policy stability and cost competitiveness, particularly as the Government prepares to introduce new EV-related taxes and finalise longer-term energy support frameworks.

“Electric vehicle (EV) registrations continued to climb this month. It’s a reminder that demand for EVs is still growing, but the pace of change remains uncertain. Bentley’s decision to push back its fully electric target to beyond 2035 reflects evolving consumer appetite and the complexities manufacturers face in planning long-term EV strategies.

“Positively, the Government’s renewed commitment to its Industrial Strategy and the DRIVE35 programme in the Budget gives the sector clearer long-term direction. The challenge now is accelerating progress: if the UK does not scale its EV manufacturing capacity quickly, it risks falling behind European competitors, who are moving at pace.”