UK Automakers Face Crunch Time: Need for New Factory Grows as Car Sales Target Looms
The UK's struggling car industry needs a large new factory to meet its ambitious target of producing 1.3 million vehicles per year by 2035, according to the Society of Motor Manufacturers and Traders (SMMT). The sector has been hit hard by US trade tariffs, production disruptions, and a cyber-attack that crippled Nissan's plant last year.
Industry chief Mike Hawes said that to reach its target, the UK must "keep what it's got, grow what it's got, and then attract additional investment". In fact, Hawes stated that getting to 1.3 million cars requires a new plant, highlighting the need for significant expansion or new entrants in the market.
The SMMT chief's comments come as Labour leader Keir Starmer prepares to visit China, where he is meeting with car industry executives and business leaders. The UK is keen to attract investment from Chinese companies, particularly those looking to expand their production in Britain.
Hawes pointed out that China is becoming increasingly prominent as a manufacturer of electric vehicles (EVs), citing the sector's growth last year when 41.7% of new cars produced were battery-electric or hybrid. He believes that a new plant would be a key factor in helping the UK meet its ambitious targets.
The industry is optimistic about a recovery in 2026, driven by growing demand for EVs. Meanwhile, Chinese carmakers are making significant strides in the UK market, with sales more than doubling last year to 9.7% of all new cars sold.
The UK's unique position as a hub for trade and investment has made it an attractive destination for companies seeking to expand their operations globally. Hawes believes that the country's long history of welcoming investors will help it to attract Chinese carmakers who are looking to set up new manufacturing bases.
However, with production capacity already stretched thin and the sector facing significant challenges, Hawes emphasized the need for decisive action from policymakers to support the industry in its quest to meet its ambitious targets.
The UK's struggling car industry needs a large new factory to meet its ambitious target of producing 1.3 million vehicles per year by 2035, according to the Society of Motor Manufacturers and Traders (SMMT). The sector has been hit hard by US trade tariffs, production disruptions, and a cyber-attack that crippled Nissan's plant last year.
Industry chief Mike Hawes said that to reach its target, the UK must "keep what it's got, grow what it's got, and then attract additional investment". In fact, Hawes stated that getting to 1.3 million cars requires a new plant, highlighting the need for significant expansion or new entrants in the market.
The SMMT chief's comments come as Labour leader Keir Starmer prepares to visit China, where he is meeting with car industry executives and business leaders. The UK is keen to attract investment from Chinese companies, particularly those looking to expand their production in Britain.
Hawes pointed out that China is becoming increasingly prominent as a manufacturer of electric vehicles (EVs), citing the sector's growth last year when 41.7% of new cars produced were battery-electric or hybrid. He believes that a new plant would be a key factor in helping the UK meet its ambitious targets.
The industry is optimistic about a recovery in 2026, driven by growing demand for EVs. Meanwhile, Chinese carmakers are making significant strides in the UK market, with sales more than doubling last year to 9.7% of all new cars sold.
The UK's unique position as a hub for trade and investment has made it an attractive destination for companies seeking to expand their operations globally. Hawes believes that the country's long history of welcoming investors will help it to attract Chinese carmakers who are looking to set up new manufacturing bases.
However, with production capacity already stretched thin and the sector facing significant challenges, Hawes emphasized the need for decisive action from policymakers to support the industry in its quest to meet its ambitious targets.
and btw, 1.3 million cars per year sounds like a nice target but are they serious about making it happen? we need some real investment in this sector not just empty promises 
, UK's car sales target is looming & they can't keep up! 
... think they're expecting people to just magic up a new factory outta thin air? 
got some major infrastructure issues to iron out first. Plus, all this fuss about getting 1.3 million cars made per year is just gonna put pressure on the environment and resource availability 
. Not to mention China's gonna take all our electric vehicle business with them when they come in 
think china's getting too big for their britches lol, might be time for us to step up our game 
2035 is like, forever away 
but hey, at least we'll have some cool electric cars 
the SMMT chief makes a point about China being a big player but it's still not addressing the root of the problem, which is gov support 
or lack thereof
. Chinese EV manufacturers are getting serious, we should too 
. Can't let US tariffs hold us back 
.
? It feels like they're trying to solve the problem instead of identifying its root causes 
.
. I think they really need that new factory ASAP 
. Mike Hawes is right on point, they can't just rely on what they've got, they need to grow and attract new investment 
1.3 mil vehicles by 2035 is a big ask, but I guess if they want to be the electric vehicle hub of Europe then yeah they gotta step up their game 
. But China's getting in on the EV action and now they're like "hey UK we wanna play too" 
. What do you guys think tho? Should they just give up or keep trying? 
. They're struggling with tariffs and cyber attacks, so I'm not sure if they can handle the pressure 
.
. And on top of that, China is becoming a major player in the EV game – 41.7% of new cars produced were battery-electric or hybrid last year! That's some serious competition 
.