UK car and commercial vehicle production took another big hit in May 2025, with output dropping by 32.8% to 49,810 units. This is the fifth consecutive monthly decline, according to new figures from the Society of Motor Manufacturers and Traders (SMMT). Outside of the Covid-disrupted year of 2020, it’s the worst May performance since 1949.
Year-to-date, the outlook doesn’t look any better. Total production so far this year has dropped by 12.9% compared to 2024, with 348,226 vehicles being produced. This is the lowest production number at this point in the year since 1953.
Passenger car production fell by 31.5%, largely due to factory retooling for new models, ongoing restructuring, and tariffs from the United States. In total, 47,723 cars were built. Commercial vehicle production dropped by a worrying 53.6%, with only 2,087 units made.
Exports continue to dominate UK car manufacturing, making up 78.5% of total output in May. However, overall car exports were down by 27.8%. Exports to the EU dropped 22.5%, while shipments to the US dropped by 55.4% following the introduction of an additional 25% tariff on British cars. The US share of UK car exports fell from 18.2% to 11.3%.
There is some optimism around US exports, though. A new trade deal with the US is expected to go live before the end of June, which could help reverse the downturn in exports to Britain’s largest single market.
Exports to China and Turkey also fell. Shipments to China were down by 11.5% and Turkey exports dropped by 51%.
Commercial vehicle exports, including vans, buses, and trucks, were down 71.7%. Although the EU still accounted for nearly 95% of overseas demand, volumes dropped by 72.1%. As a result, exports made up just 41.4% of commercial vehicle production, compared to 67.9% last year, with most of these vehicles now destined for the UK market.
Despite the continued decline, there does seem to be a dim light at the end of the tunnel. Three new trade agreements with the US, EU, and India offer a potential foundation for recovery. The industry has welcomed the government’s newly announced Industrial Strategy, highlighting the need for action on energy costs and better access to global markets. If these conditions are met, there’s a chance for the UK to get back into the world’s top 15 car-producing nations for the first time since 2018.
“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.”
Mike Hawes, SMMT Chief Executive
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