UK Car Production: 76-Year Low in May
- New data reveals a sharp decline in UK vehicle production, marking the fifth straight month of decreases.
- The slump in UK car production is attributed to model changeovers, restructuring, and the impact of tariffs.
- President Donald Trump imposed a 25% tariff on all imported cars and car parts, leading British luxury brands like Aston Martin and Jaguar Land Rover to temporarily halt...
UK car production has plummeted to its lowest point since 1949, a significant downturn revealed in May’s figures, marking a fifth consecutive month of decline. The primary_keyword, vehicle production, faces substantial headwinds, with tariffs and trade policies impacting the automotive industry, causing a ripple affect felt across the sector. The secondary_keyword, trade challenges, are reshaping the landscape, although the reduction in U.S.tariffs offers a glimmer of hope. News Directory 3 is closely following the impact of model changeovers and restructuring on UK car exports, with shipments to key markets seeing considerable drops. Discover what’s next as the industry navigates these shifts.
UK Car Production Hits Lowest Level Since 1949 Amid Trade Impact
Updated June 27, 2025
New data reveals a sharp decline in UK vehicle production, marking the fifth straight month of decreases. The Society of Motor Manufacturers and Traders reported a 32.8% drop in May, with only 49,810 units produced. This represents the lowest output as 1949, excluding the factory shutdowns during the 2020 COVID-19 lockdowns.
The slump in UK car production is attributed to model changeovers, restructuring, and the impact of tariffs. Shipments to the European Union and the United States, the UK’s primary markets, fell by 22.5% and 55.4% respectively.
Earlier in April, then-U.S. President Donald Trump imposed a 25% tariff on all imported cars and car parts, leading British luxury brands like Aston Martin and Jaguar Land Rover to temporarily halt shipments to the U.S.
Though, in May, Trump signed an executive order reducing the tariff for U.S.-based firms on the first 100,000 British cars imported annually to 10%. Prime Minister Keir Starmer stated this tariff reduction would save Jaguar Land Rover alone hundreds of millions of pounds each year.
Mike Hawes, chief executive of the SMMT, acknowledged the challenges of 2025 but expressed optimism. “While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginnings of some optimism for the