UK car factory essential to hit 1.3m vehicle target by 2035

Published: 29 January 2026. The English Chronicle Desk. The English Chronicle Online.

The UK may struggle to meet its target of producing 1.3 million cars annually without building a large new UK car factory, industry leaders have warned, as Prime Minister Keir Starmer embarks on a trade mission to China. Labour’s industrial strategy aims to nearly double output from the 764,715 cars and vans manufactured in 2025, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT).

UK car production fell sharply in 2025, declining 15.5% from the previous year, marking the lowest annual output since 1952, outside the Covid-19 pandemic years. Mike Hawes, the SMMT chief executive, emphasized that hitting the 1.3 million target would require both expansion of current facilities and investment in a new UK car factory.

Starmer’s visit to Beijing and Shanghai includes executives from major UK carmakers, such as Jaguar Land Rover and McLaren, alongside energy company Octopus Energy. Hawes suggested the trip could encourage Chinese automakers to establish a UK car factory, as they lead global expansion in electric vehicle production.

Despite challenges including US trade tariffs, production issues at Nissan, and a cyber-attack that temporarily halted operations at Jaguar Land Rover, the UK EV sector showed promise. Battery electric and hybrid vehicles accounted for a record 41.7% of new cars produced last year. Chinese carmakers, whose sales nearly doubled in the UK to 9.7% of the market, are seen as the most likely investors to build a UK car factory, supporting production of new EV models.

Hawes stressed that establishing a UK car factory would not only help meet ambitious production targets but also create jobs, boost industrial growth, and strengthen the country’s position in the rapidly expanding electric vehicle market. Discussions during Starmer’s trip are expected to focus on incentives and collaboration, aiming to make the UK an attractive location for long-term manufacturing investment.

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