UK car and commercial vehicle production plummeted by 32.8% in May, reaching a new low not seen since 1949, according to the Society of Motor Manufacturers and Traders (SMMT). This decline excludes 2020, when the industry was severely impacted by COVID-19 lockdowns.
The slowdown is largely due to ongoing model changeovers, restructuring, and the effect of tariffs. The US President’s trade policy, including a 25% tariff on imported cars, contributed significantly to the downturn. However, an executive order signed in May reduced the levy for British-made cars entering the US market.
SMMT CEO Mike Hawes expressed optimism about the future, citing confirmed trade deals with key markets and government strategies that recognize the sector’s role in driving economic growth. The automotive industry is a critical part of the UK’s international trade, with exports valued at £9 billion last year.
Currently, total vehicle production is down 12.9% compared to 2024, with 348,226 units produced so far this year. This marks the lowest level since 1953.
Source: https://www.cnbc.com/2025/06/27/trump-tariffs-uk-car-and-vehicle-output-falls-to-76-year-low-in-may.html