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UK vehicle manufacturing in May 2025 fell by 32.8%, the fifth drop in a row and the lowest level since 1949. UK vehicle manufacturing has fallen every month of 2025, and May’s figures are perhaps the worst so far as numbers drop by 32.8% to just 49,810, the lowest level since 1949 (well, if you exclude 2020’s Covid shutdown), culminating in the worst YTD figures since 1953.
The total production figures include commercial vehicles, but car production alone was down by 31.5% to 47,723, a drop blamed by SMMT on ongoing model changeovers, restructuring and the imposition of Trump’s 25% tariffs on UK car imports to the US, causing some manufacturers to limit production.
The reality is that the Trump Tariff impact is a good headline, but the fall of 55.4% of exports to the US only represents around 4,000 cars out of the 22,00 drop in numbers, with the more impactful drops coming from a 22.5% drop in exports to the EU and a 42.1% drop in cars built for UK consumption. All that said, the SMMT seems bullish about the future with new trade deals now agreed with the US, India and the EU, and the government’s landmark Industrial and Trade Strategies published this week.
Mike Hawes, SMMT boss, said:
While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginnings 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.