![](https://worldnewsradar.id/wp-content/uploads/2025/08/BANNER-RENT-300X47-COLUMN-1.png"){kind=small}
The UK automotive sector experienced a dramatic decline in production this May, reaching a level not seen in over seven decades—excluding pandemic-related disruptions. According to new data from the Society of Motor Manufacturers and Traders (SMMT), vehicle output dropped by nearly one-third compared to the same month last year, primarily due to a sharp fall in exports to the United States following new import tariffs.
I. Historic Low in Car Output
1. Production Nosedives in May
UK car manufacturers produced just 49,810 vehicles in May, marking the lowest level for that month since 1949, aside from figures during the Covid lockdowns. The SMMT attributed the decline to global trade pressures, factory transitions toward electric vehicle (EV) production, and more significantly, trade restrictions imposed by the United States.
2. Export Figures to the US Slashed by Half
One of the key causes behind the output slump was the halving of car exports to the US. Following President Donald Trump’s imposition of 25% tariffs on UK-made vehicles and components in March, several British automakers curtailed their US-bound shipments. The immediate effect was a sharp contraction in transatlantic trade, with the US share of UK auto exports dropping from nearly 20% to just over 10% in May.
II. Direct Industry Impact
1. Leading Automakers Adjust Strategy
Prominent automakers such as Jaguar Land Rover (JLR) and Aston Martin took swift action in response to the sudden tariff hike. JLR temporarily ceased exports to the United States in April, while Aston Martin scaled back its shipments. These decisions contributed significantly to the monthly production dip, as the US had previously been a major destination for British cars.
2. Electric Transition Amplifies Output Pressure
In addition to the tariff disruption, ongoing efforts to modernize UK factories for electric vehicle production also played a role in the lower output. For instance, JLR is in the process of rebranding Jaguar into a fully electric line, and Nissan is preparing its production lines for a new generation of its Leaf model. These strategic transitions, while necessary for long-term competitiveness, temporarily disrupted output volumes.
III. Signs of Recovery Ahead
1. UK-US Tariff Agreement Brings Relief
Despite the current setbacks, there are encouraging signs for recovery. A recent agreement between the US and UK is set to reduce import taxes on up to 100,000 British vehicles annually, lowering the rate from 25% to 10%. This quota aligns with the volume of UK cars exported to the US last year and should significantly ease trade tensions once implemented.
Any UK exports exceeding that quota, however, will still face a hefty 27.5% tariff. Nevertheless, with the new arrangement expected to take effect by the end of June, the SMMT believes the current constraints on production are likely to be temporary.
2. Positive Outlook from Industry Leaders
SMMT chief executive Mike Hawes acknowledged the difficulties faced by the UK automotive sector in 2025, describing it as “an incredibly challenging year.” However, he also expressed cautious optimism, noting that trade agreements with vital markets—including the US, India, and the EU—could pave the way for a gradual recovery.
IV. Strategic Support for the Sector
1. Government-Backed Initiatives Offer Lifeline
Further bolstering industry confidence is the UK government’s latest industrial strategy, which includes dedicated support for manufacturers. A key component of the strategy is a £2.5 billion fund earmarked for capital investment and R&D within the automotive industry. The strategy also aims to reduce energy costs for manufacturers, a move that is expected to enhance operational efficiency across the sector.
2. Strengthening Trade Infrastructure
The recent trade developments are part of a broader effort to reinforce the UK’s position in global markets. In tandem with tariff negotiations, UK officials are working to streamline customs processes, expand export financing, and offer technical support to automotive exporters navigating international regulations.
These coordinated efforts are expected to mitigate the impact of short-term trade shocks and promote long-term competitiveness in the electric vehicle segment, which remains central to the sector’s growth strategy.
Conclusion
The sharp decline in UK car production this May has underlined the vulnerability of the sector to external shocks—most notably, international tariffs and the challenges of transitioning to electric vehicle manufacturing. While the figures represent a sobering low not seen since 1949, the landscape is not without its bright spots.
With a newly negotiated UK-US tariff agreement, increased government support, and strategic investments in EV infrastructure, the industry may soon be poised for recovery. According to the SMMT, the success of these measures will be vital in restoring confidence and output across one of Britain’s most prominent manufacturing sectors.
