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Trade Deal · UK Auto · US Exports · Vehicle Production
The UK's total vehicle output improved in May, driven by stronger export demand, particularly an 83% surge in car exports to the US, while domestic demand weakened, as reported by the Society of Motor Manufacturers & Traders.
Total vehicle production increased 2.7% to 51,178 units in May from 49,810 units a year earlier. Exports grew 5.2% to 40,288 units, now comprising 78.7% of total output, up from 76.9%.
Conversely, domestic production declined 5.3% to 10,890 units. Car manufacturing specifically rose 3.2% to 49,249 units, but commercial vehicle manufacturing fell 7.6% to 1,929 units.
The SMMT attributed the 83% jump in US exports, totaling 7,733 units, to the US-UK trade deal that came into effect in June. However, exports to the EU decreased 5.2% to 20,057 units, and exports to China dropped 14% to 2,794 units.
SMMT Chief Executive Mike Hawes emphasized the need for sustained recovery through reduced industrial costs, maintaining free trade with the EU, and ensuring the ZEV mandate reflects market reality, warning that weak demand and compliance costs risk competitiveness and investment. Year-to-date production through May declined 8.7% to 317,779 units compared to 348,226 units over the same period in 2025.
