automotive

Automotive Exports Drop To Lowest Level!

UK car production plunged to its lowest level in May since 1949, with new data released on Friday showing a continued contraction in the country’s vehicle manufacturing sector for a fifth straight month. 

According to Britain’s leading automotive trade body, the Society of Motor Manufacturers and Traders (SMMT), total car production in May fell 32.8 per cent year-on-year to just 49,810 units. 

The decline was mainly due to ongoing model changes, factory restructuring and the impact of US tariffs on car imports. 

The report revealed a significant drop in vehicle exports to the UK’s two largest overseas markets in the month, with shipments to the European Union (EU) falling 22.5 per cent, while exports to the US plunged 55.4 per cent. 

The US market share of UK car exports had been declining steadily before Prime Minister Keir Starmer’s government recently reached a deal with Washington, a key step in stabilising trade with Britain’s biggest car export destination. 

Despite the severe contraction, SMMT Chief Executive Mike Hawes sounded a cautious note of optimism. 

“While 2025 is proving to be a very challenging year for UK automotive production, there are early signs of hope,” Hawes said, citing the trade agreement with the US and an industrial strategy that recognises the sector’s role in economic growth. 

Hawes stressed the need for urgent policy implementation to reduce the industry’s energy costs, which he said continued to pose a threat to the sector’s international competitiveness. 

Tag: Automotive Exports SMMT