Vehicle production up but pressures persist
25 Jun 2026
- May vehicle output rises 2.7% to 51,178 units in first monthly uplift this year.
- Car production grows 3.2%, reversing four months of decline, while CV output falls -7.6%.
- 317,779 vehicles built in first five months, down -8.7%, with three quarters of output exported.
- Sector urges action on energy costs, trade and market regulation to secure UK competitiveness.
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UK New Vehicle Manufacturing May 2026

UK vehicle production rose 2.7% in May to 51,178 units, according to the latest figures published today by the Society of Motor Manufacturers and Traders (91ÖÆÆ¬³§¹ÙÍø). Car output grew 3.2% to 49,249 units, reversing four months of decline, while commercial vehicle (CV) volumes fell -7.6% to 1,929 units.
The stronger overall performance was driven by overseas orders, which recovered following a -30.3% decline in May last year when US tariff uncertainty pushed volumes to the lowest level since Covid-hit 2020.1ÌýCar exports rose 3.9% to 38,897 units, while CV shipments increased 61.0% to 1,391 units, delivering an overall 5.2% outbound trade boost. Car production for the UK market was broadly stable, up 0.7% to 10,352 units, while CV output for UK buyers fell -56.0% to 538 units.

Among the top car export markets, the US was the strongest performer, with shipments up 83.1% to 7,733 units, reflecting the US-UK trade deal that came into force in June 2025. Exports to the EU fell -5.2% to 20,057 units, while those to China were down -14.3% to 2,794 units.

In the first five months, UK factories have produced 317,779 vehicles, down -8.7% year on year, with car output declining by -4.1% and CV production by -60.0%. Exports account for 76.4% of all vehicle production so far this year, with almost a quarter of a million (242,792) units shipped overseas.

Sustained recovery depends on competitive conditions – lower energy costs, open trade, and a stronger domestic market. While recent progress on industrial electricity support is welcome, more is needed to cut costs, particularly given the pressures added by the Middle East conflict. The UK must also avoid new EU trade barriers, including proposed ‘Made in Europe’ restrictions on UK-built automotive goods and tougher rules of origin from 2027. While such issues are dependent on international partners, government can, of its own, help immediately by ensuring EV market regulation reflects real-world demand so the transition remains workable and competitive.Â
Mike Hawes, SMMTChief Executive
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. A mandate aligned with real-word conditions would support decarbonisation, strengthen the market, and help unlock the investment needed for long-term economic growth.

Notes to editors
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