UK vehicle production declines in May to lowest level since 1949, but sector remains optimistic

From Yahoo Finance: 2025-06-30 10:35:00

UK vehicle production saw a 32.8% decline in May to 49,810 units, the lowest since 1949. Car production fell by 31.5%, with 47,723 units produced. Exports dropped by 27.8%, with the US imposing a 25% tariff. The UK Government aims to alleviate constraints with a new trade agreement.

Despite challenges, the UK automotive sector remains optimistic. Three new trade deals with the US, EU, and India aim to boost the industry. Addressing energy costs and enhancing access to international markets could help the UK regain its position among the top automotive manufacturing nations.

SMMT chief executive Mike Hawes is optimistic about the sector’s future. With confirmed trade deals and government support, recovery is on the horizon. Rapid implementation of strategies could lead to job creation, growth, and decarbonization in the industry. Customers in the UK are open to buying cars from emerging Chinese carmakers.

Read more: UK vehicle production constraints affect May output: SMMT