UK vehicle production edged higher in May, recovering from a year-earlier slump caused by tariff uncertainty, the Society of Motor Manufacturers and Traders reported Thursday.
A total of 51,178 vehicles rolled off UK production lines in May, a 2.7% increase compared with the same month last year. Car production rose 3.2% to 49,249 vehicles, driven entirely by export growth, while volumes for the domestic market remained broadly stable.
The United States accounted for the strongest single-market jump in exports. Shipments to the U.S. surged 83% to 7,733 units, a gain the SMMT attributed to the U.S.-U.K. trade deal that took effect in June 2025. The deal eliminated tariffs on most industrial goods between the two countries, giving UK automakers a competitive advantage in the American market.
Exports to the European Union, the UK’s largest auto-export market, fell 5.2% to 20,057 units, while shipments to China dropped 14% to 2,794 units.
Commercial vehicle production declined by 7.6% to 1,929 units.
SMMT Chief Executive Mike Hawes welcomed the overall growth but warned that sustained recovery depends on policy changes.
“That means reducing industrial costs, maintaining free and open trade with the EU, and ensuring the Zero Emission Vehicle mandate reflects market reality,” Hawes said.
“Manufacturers are investing billions in zero emission technology, but weak underlying demand and the growing cost of compliance are putting competitiveness, jobs and future investment at risk,” he added.
The SMMT said the priority must be to make the UK a more competitive place to manufacture and sell vehicles by addressing industrial costs and trade barriers.