Posted on the 11th September 2026 in PHTM News

ICONIC LONDON TAXI MAKER CUTS LOSSES BY OVER £100 MILLION DESPITE WORKFORCE REDUCTION

LEVC, the manufacturer behind London's famous black taxis, significantly narrowed its pre-tax losses to £61.7m for the year ending 31 December 2025, a sharp improvement from the £179.4m loss recorded in 2024.

This financial recovery occurred even as overall turnover dropped from £88.1m to £59.5m, driven by a company strategy to control manufacturing costs, which fell by more than 24 per cent compared to the previous year.

The West Midlands-based company, which is owned by Chinese automotive giant Geely, reported that it "achieved its sales targets in the UK and overseas despite a slow-moving market, declining driver numbers in London, and high interest rates." Meeting market demand forecasts, LEVC recorded 725 sales while successfully managing supply chain pressures.

However, the company has faced significant operational hurdles that forced major structural changes. In July 2025, LEVC launched a compulsory redundancy programme that slashed its workforce by 45 per cent, bringing staff numbers down from 336 to 182 by the end of the year, with operational delivery areas seeing a 70 per cent cut.

Looking ahead to 2027, the company anticipates a "continued decline in the London taxi segment."

LEVC pointed to "market uncertainty, the confirmed withdrawal of the Plug-in Taxi Grant on 5 April 2026, and ongoing high financing and insurance costs" as key challenges.

These pressures, alongside the regulatory limitations of the current TX5 model, led the manufacturer to wind down assembly operations and prepare for the vehicle's final lifecycle stage.

LEVC stated that these difficult measures "align the business activities to the regulatory limitations of the current TX5" and deteriorating market conditions.

Ultimately, the restructuring aims to minimise financial risks and establish an operational baseline to support future growth, paving the way for Geely to develop the next generation of the iconic taxi at the Ansty facility.


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