Almost one per cent of cars manufactured in the UK in 2025 were exported to the UAE, latest figures show.
The UAE was the 10th highest market for British-made cars, according to the Society of Motor Manufacturers and Traders.
Europe was the number one market with 56.7 per cent share of exports, followed by the US (15 per cent) and China (6.3 per cent).
Turkey (5.3 per cent) and Japan (2.9 per cent) completed the top five, while the others to make the top 10 were Canada (1.6 per cent), Australia (1.5 per cent), South Korea (1.5 per cent), plus Switzerland with 0.9 per cent − the same share as the UAE.
UK vehicle production was down 15.5 per cent in 2025, as 764,715 cars and vans left British factories, with 717,371 exported. The introduction of US tariffs and a cyber attack that crippled Jaguar Land Rover’s production for two months accounted for much of the fall.
Luxury cars were notably popular among the almost 7,000 cars that headed to the UAE, which is an “important, niche market”, said Mike Hawes, chief executive of SMMT.
The UAE was in 9th place in 2024, but with a lower overall volume at 6,600 exported to the UAE.
Jaguar Land Rover – whose Defender model has been used by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai – is made in the UK, as are Bentley, Rolls-Royce and McLaren vehicles.
“The UAE is a more important market for certain of our exporters. In Dubai, you will see plenty of luxury vehicles which are from the UK on the roads,” said Mr Hawes:
He also highlighted the importance of Gulf investment in some UK automotive companies. Abu Dhabi’s CYVN Holdings bought McLaren’s car-building division from Bahrain’s Mumtalakat sovereign wealth fund early in 2025, while Saudi Arabia’s Public Investment Fund holds a minority stake in Aston Martin.
“It’s an important relationship,” said Mr Hawes.
Electric spark
More than four in 10 (41.7 per cent) cars made in Britain are now electric, a record share of output that is up 8.3 per cent. This is set to increase in 2026, with Japanese manufacturer Nissan beginning volume electric car production in Sunderland, in north-east England, plus car makers planning to launch seven new electric models across the UK.
However, the SMMT called for a review of the industry’s government’s Zero Emission Vehicle mandate, intended to accelerate the transition to electric. Manufacturers were fined if they failed to hit a target of 28 per cent of their vehicles being electric, which led to significant slashing of prices. The target increases to 33 per cent this year, 80 per cent by 2030 and 100 per cent by 2035.
Mr Hawes said that “2025 was the toughest year in a generation for UK vehicle manufacturing”.
“Structural changes, new trade barriers and a cyber attack that stopped production at one of the UK’s most important manufacturers combined to constrain output, but the outlook for 2026 is one of recovery,” he added
“The launch of a raft of new, increasingly electric, models and an improving economic outlook in key markets augur well.
“The key to long term growth, however, is the creation of the right competitive conditions for investment; reduced energy costs; the avoidance of new trade barriers; and a healthy, sustainable domestic market.
“Government has set out how it will back the sector with its industrial and trade strategies, and 2026 must be a year of delivery,” said Mr Hawes.
