Financial News: UK Car Production Rises For First Time In

UK Car Production Rises For First Time In 5 Months: SMMT

06/25/2026 - 07:29:00 (RTTNews)

(RTTNews) - UK car production grew for the first time this year in May, driven primarily by increased orders from the United States, the Society of Motor Manufacturers and Traders, or SMMT, said Thursday.

Car production increased 3.2 percent in May, reversing four months of decline. Meanwhile, commercial vehicle output fell 7.6 percent.

Overall vehicle output moved up 2.7 percent to 51,178 units in first monthly uplift this year.

The increase was driven by foreign demand, which grew 5.2 percent following a 30.3 percent decline in May 2025 due to the US tariff uncertainty.

Car exports grew 3.9 percent in May, while commercial vehicle shipments advanced 61.0 percent. Car production for the domestic market rose 0.7 percent but CV output for UK buyers plunged 56.0 percent.

Among the top car export destinations, the US was the strongest performer, with shipments rising 83.1 percent, reflecting the US-UK trade deal that came into force in June 2025.

Exports to the EU dropped 5.2 percent and those to China decreased 14.3 percent. During January to May, about 317,779 vehicles were built, down 8.7 percent, with three quarters of output exported.

"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," SMMT Chief Executive Mike Hawes said.

"That means reducing industrial costs, maintaining free and open trade with the EU, and ensuring the ZEV mandate reflects market reality," said Hawes.

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