UK vehicle production dropped in May for the fifth straight month, as factory disruptions and new U.S. tariffs affected output.
Total car and commercial vehicle production declined 32.8% from a year earlier to 49,810 units, the sharpest fall for May since 1949, excluding the pandemic-hit year of 2020, according to data from the Society of Motor Manufacturers and Traders.
Car production alone fell by 31.5%, driven by model changes, plant restructuring, and the impact of U.S. tariffs. Exports to the UK’s largest markets also fell, with shipments to the European Union down 22.5% and to the United States down 55.4%.
In March, U.S. President Donald Trump imposed a 25% tariff on imported cars and parts. The measure disrupted global supply chains, raised costs for automakers, and led some manufacturers to suspend exports or consider shifting production to the U.S.
The broader manufacturing sector in Britain also contracted in May, with declines in output, new orders, and employment.
Despite the fall in production, SMMT said recent trade developments offered some optimism. The UK and the U.S. reaffirmed a trade deal at the G7 summit earlier this month, allowing up to 100,000 UK-made vehicles per year to enter the U.S. market at a reduced 10% tariff.
This compares to the 25% rate faced by other countries.
Britain also signed a trade agreement with India in May to reduce tariffs and set quotas on car imports, and has taken steps toward closer cooperation with the European Union in areas such as energy, agriculture, and defence.
