Car production in the United Kingdom recorded the most significant drop in the last 75 years in May, according to data published by the Society of Motor Manufacturers and Traders (SMMT), in a context marked by tough trade tariffs imposed by the Trump administration and internal industry changes.
The total volume of production of new cars and commercial vehicles decreased by 32.8% in May, reaching only 49,810 units, CNBC reports.
With the exception of 2020, marked by closures during the pandemic, this is the lowest monthly production recorded in the UK since 1949.
Exports to the two main markets of the British automotive industry — the European Union and the United States — have significantly decreased: by 22.5% and 55.4% respectively compared to the same month last year.
The sharp decline is attributed by the SMMT to several factors, including the transition to new models, industrial restructuring, and the impact of new trade tariffs.
In April, American President Donald Trump introduced a 25% tariff on all cars and auto parts imported into the US. This measure led British brands such as Aston Martin and Jaguar Land Rover to temporarily suspend exports to the American market.
Subsequently, in May, Trump signed an executive order reducing the tariff imposed on American companies importing British cars to 10% for the first 100,000 units annually. British Prime Minister Keir Starmer welcomed this decision, stating that the measure would save hundreds of millions of pounds annually for Jaguar Land Rover alone.
Mike Hawes, CEO of SMMT, acknowledged that 2025 is an extremely challenging year for the British automotive industry, but expressed a note of optimism, emphasizing that confirmed trade agreements with key markets — especially the US — and more stable relationships with the European Union could contribute to a gradual recovery.
The automotive sector is considered a central force of British international trade. Just last year, the UK exported vehicles worth £9 billion to the US, representing over 27% of the total exports of the British automotive industry.
For 2025, the total production of vehicles in the UK reached 348,226 units, a decrease of 12.9% compared to the same period in 2024. It is the lowest production volume recorded since the beginning of the year in a comparable period since 1953.