UK car production plunges as tariffs bite - SMMT
By Abigail Townsend
Date: Friday 27 Jun 2025
(Sharecast News) - UK car production slumped to a near 80-year low in May, industry figures showed on Friday, as Donald Trump's swingeing tariff regime hit home.
According to the Society of Motor Manufacturers and Traders, car and commercial production fell for a fifth consecutive month, tumbling 32.8% to 49,810 units, the weakest performance since 1949 excluding Covid.
In the year to date, total output was 12.9% lower compared to 2024, at 348,226, the lowest since 1953.
The SMMT attributed the 31.5% slide in car production to ongoing model changeovers, restructuring and the impact of US tariffs. Car production for export fell 27.8%.
A number of British brands, including Jaguar Land Rover and Aston Martin, temporarily suspended US-bound shipments from April, after Trump imposed stringent taxes on imported cars and automotive parts.
Car shipments to the country fell 55% in May, the SMMT noted, reducing the US share of exports to 11% from 18%. Exports to the European Union were also lower, however, down 22.5%.
The EU and US are the UK's two largest markets.
However, looking forward and the SMMT struck a cautiously optimistic note, pointing to the key trade deals struck with the EU, India and US - which have allowed shipments to resume - as well as the government's long-awaited industrial strategy.
Mike Hawes, SMMT chief executive, said: "While 2025 has proved to be an incredibly challenging year for the 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, as well as governments strategies on industry and trade...should help recovery."
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