8:08 am, June 25, 2026
UK vehicle production rose in May, buoyed by higher exports. But the industry’s trade body is again calling for the government to ensure the UK remains a competitive place to make and sell vehicles.
May saw total vehicle production numbers top 51,178 units, which represented a 2.7% rise, latest figures from the Society of Motor Manufacturers and Traders (SMMT) show.
Car output grew 3.2% to 49,249 units, reversing four months of decline, while commercial vehicle (CV) volumes fell 7.6% to 1,929 units.
The overall increase was driven by higher overseas orders, which recovered following a 30.3% decline in May last year when US tariffs kicked in.
Car exports rose 3.9% to 38,897 units, while CV shipments increased 61.0% to 1,391 units, delivering an overall 5.2% outbound trade boost.
Car production for the UK market was broadly stable, up 0.7% to 10,352 units, while CV output for UK buyers fell 56.0% to 538 units.
Among the top car export markets, the US was the strongest performer, with shipments up 83.1% to 7,733 units, reflecting the US-UK trade deal that came into force in June 2025.
Exports to the EU fell 5.2% to 20,057 units, while those to China were down 14.3% to 2,794 units.
SMMT figures show that in the first five months, UK factories have produced 317,779 vehicles, down 8.7% year on year, with car output declining by 4.1% and CV production by 60.0%.
Exports account for 76.4% of all vehicle production so far this year, with almost a quarter of a million (242,792) units shipped overseas.
The SMMT has again called on better competitive conditions for UK factories – ‘lower energy costs, open trade and a stronger domestic market’, a statement said, adding: ‘The UK must also avoid new EU trade barriers, including proposed “Made in Europe” restrictions on UK-built automotive goods and tougher rules of origin from 2027.’
Mike Hawes, SMMT chief executive, said: ‘May’s growth is welcome, and the priority must be to turn this into a sustained recovery by making the UK more competitive as a place to make and sell vehicles. That means reducing industrial costs, maintaining free and open trade with the EU, and ensuring the ZEV mandate reflects market reality.
‘Manufacturers are investing billions in zero emission technology, but weak underlying demand and the growing cost of compliance are putting competitiveness, jobs and future investment at risk.
‘A mandate aligned with real-word conditions would support decarbonisation, strengthen the market, and help unlock the investment needed for long-term economic growth.’
