LONDON: U.K. vehicle production fell sharply for a fifth consecutive month in May, reaching its lowest level since 1949 outside of the COVID-19 pandemic, as trade pressures and factory changes continued to disrupt the industry, new data showed Friday.
The Society of Motor Manufacturers and Traders reported that production of new cars and commercial vehicles dropped 32.8% last month to 49,810 units. The decline was driven by reduced shipments to the European Union and the United States, the U.K.’s two largest markets, which fell 22.5% and 55.4%, respectively.
The slump follows model updates, factory restructuring and the impact of U.S. tariffs imposed earlier this year. In April, former President Donald Trump reinstated a 25% tariff on all cars and car parts imported into the U.S., prompting British automakers like Aston Martin and Jaguar Land Rover to halt some shipments.
However, in May, Trump signed an executive order lowering the tariff to 10% for the first 100,000 British-made cars imported annually. U.K. Prime Minister Keir Starmer said the adjustment would save Jaguar Land Rover alone hundreds of millions of pounds per year.
Mike Hawes, CEO of SMMT, acknowledged the industry’s struggles but expressed cautious optimism.
“While 2025 has proved to be an incredibly challenging year for U.K. automotive production, there is the beginnings of some optimism for the future,” Hawes said in a statement. He cited new trade agreements with key markets, improved EU relations and government support as factors that could aid recovery.
The last time production was this low outside of pandemic-related shutdowns was in 1949, when Britain’s auto industry was still recovering from World War II.