UK car production has fallen to its lowest May level in 76 years, as new U.S. tariffs on vehicles and parts took a toll on exports, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
Just 49,810 cars rolled off UK production lines last month — a drop of nearly 30% compared to May last year. The SMMT said this was the lowest May output recorded since 1949, excluding the pandemic-hit period in 2020.
The sharp decline was largely driven by a collapse in exports to the United States, which were cut in half following the Trump administration’s introduction of new 25% tariffs in March. These levies, aimed at protecting the American auto industry, had a swift and damaging effect on British carmakers.
“Demand was depressed instantly, forcing many manufacturers to stop shipments,” the SMMT said in its report. Jaguar Land Rover (JLR) suspended exports to the U.S. in April, while Aston Martin significantly scaled back its shipments. As a result, the U.S. share of UK car exports fell from nearly 20% to just over 10% in May.
The impact was further compounded by ongoing changes in the industry as manufacturers transition to electric vehicle (EV) production. JLR is in the process of converting Jaguar into an all-electric brand, and Nissan is preparing for the launch of its next-generation Leaf, both of which involve significant factory retooling and temporary production slowdowns.
However, industry leaders expressed cautious optimism about the months ahead. A new trade deal agreed in May between the U.S. and UK will see tariffs on 100,000 British-made cars per year reduced from 25% to 10%. Vehicles exported above that quota will still face a steep 27.5% tax, but the SMMT believes the tariff cut — due to take effect before the end of June — could help restore demand and revive production levels.
SMMT Chief Executive Mike Hawes acknowledged that 2025 has been “an incredibly challenging year” for UK automakers, but said the outlook is improving. “There is some optimism for the future,” he said, citing recent trade deals with key partners including the U.S., EU, and India, as well as domestic policy support.
The UK’s newly unveiled industrial strategy includes a £2.5 billion fund for automotive capital and R&D, along with measures to lower energy costs for manufacturers — all aimed at boosting competitiveness in a rapidly evolving global auto market.
