UK's May Auto Production Sees First Rebound This Year, Driven by Surge in Exports to the US

The latest data released by the Society of Motor Manufacturers and Traders (SMMT) on June 25 shows that driven by a significant surge in exports to the US, UK auto production rose 2.7% year-on-year in May, ending a four-month consecutive decline.

Data shows that total UK auto production reached 51,178 units in May. Among them, passenger car production stood at 49,249 units, up 3.2% year-on-year, while commercial vehicle production totaled 1,929 units, down 7.6% year-on-year.

Last month, UK auto exports to the US surged by 83.1%, while exports to the EU and China fell by 5.2% and 14.3%, respectively. In the first five months of this year, total UK auto production fell 8.7% year-on-year to 317,779 units.

The UK automotive industry body warned that high energy costs, trade frictions, and weak demand for electric vehicles are continuously eroding the industry's competitiveness.

Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, said: "Automakers are investing billions in developing zero-emission models, yet domestic demand is sluggish and compliance costs are rising, putting the industry's competitiveness, jobs, and future investment at risk."

The association also stated that the EU's proposed "Made in the EU" clause, coupled with stricter rules of origin set to be enforced under the post-Brexit trade agreement in 2027, could restrict UK-made cars' access to the EU market. Meanwhile, tensions in the Middle East pose a risk of further increases in energy prices. The EU remains the largest export destination for UK cars.

Facing fierce competition from affordable Chinese electric vehicles, the SMMT and major automakers are calling for clarity on whether vehicles produced in the UK will be excluded from the new version of the "Made in the EU" clause. The industry fears that policy uncertainty could dampen industrial investment.