UK vehicle production falls in tough May but optimism remains

Production of cars and commercial vehicles in the UK fell for the fifth month in a row in May, while car exports to the US halved, the Society of Motor Manufacturers & Traders reported on Friday.

UK car and commercial vehicle production dropped 33% to 49,810 units in May. This was the lowest volume for that month since 1949, not including in 2020 when the Covid-19 pandemic ‘saw factories shuttered or running at greatly reduced capacity’.

In the year to date, production fell 13% on-year to 348,226 units, which the SMMT said was the lowest since 1953.

The trade association furthermore said that car production declined by 32% in May to 47,723 units, due primarily to ongoing model changeovers, restructuring and the impact of US tariffs. Commercial vehicle output fell 54% to 2,087 units.

Car production for export fell by 28%, although exports comprised a larger share of production at 78.5%.

‘Car production for export fell by 27.8%, although a 42.1% fall in output for the smaller domestic market meant exports comprised a larger share of production, up to 78.5%,’ the SMMT added.

‘Shipments to the EU and US, the UK’s two largest markets, fell by -22.5% and -55.4% respectively...This was in large part due to the imposition by the US administration of supplementary 25% Section 232 tariffs on cars from March which depressed demand instantly, forcing many manufacturers to stop shipments.

‘However, with the trade agreement negotiated by government due to come into effect before the end of June, this should hopefully be a short-lived constraint.’

Meanwhile, SMMT Chief Executive Mike Hawes commented: ‘While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginning of some optimism for the future.

‘Confirmed trade deals with crucial markets, especially the US and a more positive relationship with the EU, as well as government strategies on industry and trade that recognise the critical role the sector plays in driving economic growth, should help recovery.

‘With rapid implementation, particularly on the energy costs constraining our competitiveness, the UK can deliver the jobs, growth and decarbonisation that is desperately needed.’

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