Britain’s car and van manufacturing sector has recorded its weakest May for more than seven decades, with output falling by almost a third amid new US tariffs and the ongoing transition to electric vehicle production.
According to the Society of Motor Manufacturers and Traders (SMMT), just 49,810 vehicles were built in the UK last month — the lowest May total since 1949, excluding 2020 when the pandemic shuttered production lines. Total car output dropped 31.5 per cent to 47,723 units, while commercial vehicle production slumped 53.6 per cent to just 2,087.
It marks the fifth consecutive monthly fall in production and takes total output so far in 2025 to 348,226 vehicles — down 12.9 per cent on the same period last year and the lowest year-to-date figure since the early 1950s.
The sharp decline has been attributed in part to the impact of tariffs introduced by the United States in March. President Trump’s administration imposed a supplementary 25 per cent duty on British-made cars, raising total import costs and prompting several UK manufacturers to temporarily halt shipments across the Atlantic.
Shipments to the US plummeted by 55 per cent in May, cutting the American share of UK vehicle exports from 18.2 per cent to 11.3 per cent.
“Trump’s tariffs depressed demand instantly, forcing many manufacturers to stop shipments,” said the SMMT.
Among those hit was Jaguar Land Rover, the UK’s largest automotive employer, which paused exports to America for a month following the tariffs. However, there is hope for a modest recovery following a new UK-US trade deal that allows up to 100,000 vehicles to be exported annually at a reduced 10 per cent tariff — still significantly higher than the pre-tariff 2.5 per cent.
The US slump was not an isolated case. Exports to the European Union — still the UK’s largest single market — dropped by 22.5 per cent, while shipments to China and Turkey fell 11.5 per cent and 51 per cent respectively.
With both domestic and international demand weakening, the overall share of vehicles built in Britain destined for export climbed to 78.5 per cent, as the UK market saw an even sharper fall of 42.1 per cent.
Commercial vehicle production was also hit hard, reflecting the recent closure of the Stellantis-owned Vauxhall van plant in Luton. The historic Bedfordshire facility, which had produced vans for 120 years, was shuttered in March, affecting around 1,200 workers.
Despite the dismal figures, industry leaders are cautiously optimistic about the longer-term outlook.
Mike Hawes, SMMT chief executive, said: “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, alongside the government’s new industrial and trade strategies, should help support recovery.”
Much of the recent production disruption has stemmed from retooling efforts to shift towards electric vehicle (EV) manufacturing. While necessary to remain competitive in a global market, the transition has come with short-term production pauses and supply chain challenges.
Aston Martin this week confirmed that it would resume shipments to the US after a three-month pause, thanks to the new UK-US trade deal. However, CEO Adrian Hallmark warned that volatility in trade policy and diverging emissions standards across markets posed a risk to manufacturers’ long-term planning.
The UK automotive industry, once a global manufacturing powerhouse, has faced years of challenges, from Brexit-related trade frictions to the Covid-19 pandemic, semiconductor shortages and now geopolitical tariff disputes.
While the government has pledged support through its newly launched industrial strategy and decarbonisation agenda, manufacturers continue to grapple with rising costs, labour shortages and policy uncertainty — not least around the phasing out of petrol and diesel vehicles.
As output falters and factories like Stellantis in Luton close, the data serves as a stark reminder that the UK’s automotive sector remains highly vulnerable to global trade shocks — and that the road to recovery, and electrification, will not be a smooth ride.
