The British car industry is in steep decline, with production numbers falling to alarmingly low levels. While historical data shows periods of strong output even amidst post-war recovery and labor unrest, current figures reveal a worrying trend: 2025 saw just 717,371 cars produced, less than half the output from a decade ago and significantly lower than even the 1950s. This isn’t simply a matter of productivity; it’s a systemic failure of domestic investment.
Historical Context: From Post-War Recovery to Modern Decline
In 1955, a recovering Britain built 897,560 cars despite primitive factory conditions. The 1970s, though marked by labor disputes, still maintained an annual output exceeding one million, peaking at 1.9 million in 1972. By the mid-2010s, with modern, automated plants, production reached around 1.7 million. Yet, over the last four years, output has plummeted to below 800,000 annually – a dramatic regression.
The irony is stark: Britain now produces fewer cars than it did almost three-quarters of a century ago, despite technological advancements. The lack of investment from British entrepreneurs is evident. High-profile figures like Richard Branson, James Dyson, and Jim Ratcliffe either dabbled briefly in car ventures or chose to manufacture their products abroad, undermining domestic production.
The Chinese Solution: A Pragmatic Reality
Currently, Chinese investment represents the most viable path to reversing this decline. The Chery Jaguar Land Rover (CJLR) joint venture is already operational, and expansion is logical. Chery could leverage underutilized JLR plants in the UK to increase capacity, providing both the Chinese firm with ready-made production lines and British workers with more stable employment.
The Chinese will get the ready-made UK production lines and trained workforce they crave. JLR’s profits from the deal should be healthy. Local factory workers will presumably be more productively employed, and less likely to face redundancy.
Victor Zhang, Chery UK director, emphasized a commitment to building a British business, and the company is reportedly establishing an R&D facility on Merseyside. With Jaguar’s UK production effectively stalled and factories underutilized, Chery has further opportunities for expansion.
Lessons from the Past, Hope for the Future
The arrival of Nissan in Sunderland and Toyota in Burnaston in the 1980s revitalized British manufacturing. A similar injection of Chinese investment could have the same effect, injecting capital and production into a struggling sector.
The situation is clear: domestic investment has failed to stem the decline. The pragmatic reality is that Chinese partnership offers the best immediate hope for reviving UK car production and safeguarding jobs.
