UK vehicle production rose 5.7% year on year to 40,872 units in August as domestic demand strengthened, while car output increased 6.1% to 39,328 units, its strongest growth since December 2025. Exports to Australia, Japan and the United States posted the biggest gains among the UK’s 10 largest markets, but shipments to the European Union fell 7.4%; the bloc still accounted for 54.1% of UK car exports. China-bound shipments declined 15%. The Society of Motor Manufacturers and Traders said investments of more than £1 billion from companies including McLaren, Nissan and Bentley supported the sector’s long-term prospects, but warned that the EU’s proposed Made in Europe provisions could threaten UK production. The broader EU proposal could require more than 70% of electric-vehicle parts to be sourced and assembled within the region, potentially affecting subsidies, public procurement and corporate vehicle benefits from as early as 2028.