UK Car Production Sunk to 76 Year Low in May

UK car production in May sank to its lowest level since 1949 as US tariffs hit exports.

Production fell by nearly a third from a year earlier, to 49,810 units.

The Society of Motor Manufacturers and Traders, SMMT, says it’s the lowest figure for 76 years – excluding the period hit by the 2020 Covid pandemic lockdowns.

Exports to the US halved as President Donald Trump’s tariffs caused some UK car makers to halt shipments.

However, SMMT says US import taxes on UK cars are due to be cut by the end of June, giving cause for optimism.

The drop in exports to the US came after the Trump administration announced new 25 per cent tariffs on cars and car parts in March.

This depressed demand and forced 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.