(Alliance News) – May saw UK vehicle production rise for the first time in 2026, according to an industry report published on Thursday.
The Society of Motor Manufacturers & Traders posted a 2.7% increase in UK vehicle production to 51,178 units in May, representing the first monthly increase so far this year.
On an annual basis, vehicle production was 2.8% ahead of the level reported in May 2025. Car production alone rose 3.2% to 49,249 units, improving after four successive months of decline, though commercial vehicle production decreased by 7.6% in May to 1,929 units.
“The stronger overall performance was driven by overseas orders,” the SMMT noted. This was a recovery from a 30% downturn in May 2025, when US tariff-related concerns pushed volumes down to their lowest level since 2020.
The US was the strongest market for car exports, reflecting a trade deal with the UK that took effect in June last year, while car exports to the EU and China from the UK declined in May. In total, exports accounted for just over 76% of all UK vehicle production so far this year.
In the first five months of 2026, UK vehicle production has fallen 8.7% on-year to 317,779 vehicles.
“While recent progress on industrial electricity support is welcome, more is needed to cut costs, particularly given the pressures added by the Middle East conflict. 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,” the trade group said.
SMMT Chief Executive Mike Hawes commented: “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 [zero emission vehicle] mandate reflects market reality.”
By Holly Munks, Alliance News reporter
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