UK car production returns to growth in May as exports rebound

UK car production returned to growth in May after four consecutive months of decline, with stronger export demand helping lift overall vehicle manufacturing despite continued weakness in commercial vehicle output.

According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), UK vehicle production increased by 2.7% year-on-year to 51,178 units during the month. Car output rose 3.2% to 49,249 units, while commercial vehicle production fell 7.6% to 1,929 units.

The recovery was largely driven by overseas demand. Car exports increased 3.9% to 38,897 units and commercial vehicle exports surged 61% to 1,391 units, resulting in a 5.2% rise in overall vehicle exports. Domestic demand remained comparatively subdued, with UK car production edging up just 0.7% to 10,352 units and commercial vehicle production for the home market dropping 56% to 538 units.

The United States was the standout export destination, with shipments rising 83.1% to 7,733 vehicles following the implementation of the UK-US trade agreement in June 2025. Meanwhile, exports to the EU—the UK’s largest automotive market—fell 5.2% to 20,057 units, while shipments to China declined 14.3% to 2,794 units.

Despite May’s improvement, the sector remains behind last year’s performance. UK manufacturers have produced 317,779 vehicles during the first five months of 2026, an 8.7% decline compared with the same period in 2025. Car production is down 4.1%, while commercial vehicle output has fallen 60%.

With exports accounting for more than three-quarters (76.4%) of UK vehicle production so far this year, the SMMT said maintaining international competitiveness will be critical to sustaining the recovery.

Mike Hawes, SMMT Chief Executive, welcomed the return to growth but warned that structural challenges continue to threaten the industry’s competitiveness.

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.
Mike Hawes, SMMT Chief Executive

The SMMT also urged government to build on recent support for industrial electricity costs, warning that geopolitical tensions and the prospect of new European trade barriers could undermine the sector. The organisation called for reforms to the UK’s Zero Emission Vehicle (ZEV) mandate to better reflect current market demand and support continued investment in the transition to electric vehicles.