UK vehicle production continues to face constraints, with figures from the Society of Motor Manufacturers and Traders (SMMT) revealing a 32.8% decline in May to 49,810 units.

It marked the lowest May performance since 1949, excluding 2020's pandemic-affected production.

The year-to-date output is down 12.9% to 348,226 units, the lowest since 1953.

Car production decreased by 31.5% in May, attributed to ongoing model changeovers, restructuring, and the impact of US tariffs.

A total of 47,723 units were produced. Commercial vehicle output also saw a drop of 53.6% to 2,087 units, influenced by the closure of a UK commercial vehicle plant.

Car exports dropped by 27.8%, with a 42.1% decline in domestic market output, increasing exports' share to 78.5%.

Shipments to the EU and US, the UK's largest markets, decreased by 22.5% and 55.4%, respectively.

The US share of exports fell from 18.2% to 11.3% due to a 25% Section 232 tariff imposed by the US administration in March.

The UK Government has negotiated a trade agreement expected to take effect by the end of June, potentially alleviating this constraint.

Exports to China and Turkey also declined by 11.5% and 51%, respectively.

Export volumes of vans, buses, coaches, taxis, and trucks fell by 71.7% year-on-year.

The EU remained the largest customer for UK commercial vehicles, accounting for 94.7% of exports, despite a 72.1% drop in volumes.

Consequently, the export share of overall commercial vehicle production decreased from 67.9% to 41.4%, with the domestic market becoming the primary destination.

Despite current constraints, the sector remains optimistic, according to SMMT.

With three new trade deals with the US, EU, and India, the industry aims to leverage the UK Government's industrial and trade strategies.

According to the trade body, addressing energy costs, enhancing access to international markets, and stimulating domestic demand could help the UK regain its position among the top 15 automotive manufacturing nations.

SMMT chief executive Mike Hawes said: “While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginnings 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 government strategies on industry and trade that recognise the critical role the sector plays in driving economic growth, should help recovery.

“With rapid implementation, particularly on the energy costs constraining our competitiveness, the UK can deliver the jobs, growth and decarbonisation that is desperately needed.”