Tom Espiner
Business reporter, BBC News
Reuters
UK car production sank to its lowest level since 1949 in May as US tariffs hit exports, an industry group has said.
Production fell by nearly a third from a year earlier to 49,810 units, according to the Society of Motor Manufacturers and Traders (SMMT), which – excluding the 2020 Covid pandemic lockdowns – was the lowest figure for 76 years.
Exports to the US halved as President Donald Trump’s tariffs caused some UK car makers to halt shipments.
Production was also hit by continuing work to change factories over to electric vehicle production, the SMMT said.
The drop in exports to the US came after the Trump administration announced new 25% tariffs on cars and car parts in March.
This “depressed demand instantly forcing many manufacturers to stop shipments”, the SMMT said.
Jaguar Land Rover suspended shipments to the US in April, while Aston Martin reduced exports, after the tariffs were imposed early in the month.
The US share of UK exports fell from nearly a fifth to just over a tenth in May.
However, in May the US and UK reached an agreement that included reducing import taxes on a set number of British cars from 25% to 10%.
The deal is due to come into force before the end of June, so the taxes “should hopefully be a short-lived constraint” on production, the SMMT said.
Mike Hawes, the SMMT’s chief executive, said while 2025 has been “an incredibly challenging year”, there is still “some optimism for the future”.
He said trade deals with “crucial markets”, including the US, India, and the EU, plus UK government strategies on industry and trade, “should help recovery”.