UK vehicle production increased 5.7% to 40,872 units in August as domestic demand strengthened, despite the month’s usual plant shutdowns and output volatility. Car production rose 6.1% to 39,328 units, its strongest growth since December 2025, supported by larger exports to Australia, Japan and the United States. Shipments to the European Union fell 7.4%, although the bloc still received 54.1% of UK car exports and remained the country’s largest overseas market. Exports to China declined 15%. The Society of Motor Manufacturers and Traders (SMMT) said investments exceeding £1 billion from McLaren, Nissan and Bentley point to longer-term industry prospects, but warned that proposed EU "Made in Europe" provisions could threaten UK production by excluding British-made vehicles from their largest market.