UK Car Manufacturing Plummets to Lowest Level Since 1949
(MENAFN) UK car manufacturing plummeted for the fifth consecutive month in May, reaching its lowest point since 1949. Data released by the Society of Motor Manufacturers and Traders (SMMT) on Friday revealed a 32.8% year-on-year decline in new car and commercial vehicle production, totaling just 49,810 units.
The SMMT emphasized that "excluding 2020, when Covid lockdowns caused factories to close or operate at significantly reduced capacity, it was the lowest performance for the month since 1949."
The drop in production was attributed to ongoing model transitions, factory restructuring, and the ongoing effects of US tariffs on UK exports. Exports to the UK’s largest markets, the US and the EU, fell sharply in May, down 55.4% and 22.5%, respectively.
"Confirmed trade deals with crucial markets, especially the US, and a more positive relationship with the EU, as well as government strategies on industry and trade that recognize the critical role the sector plays in driving economic growth, should help recovery," said SMMT CEO Mike Hawes.
"With rapid implementation, particularly on the energy costs constraining our competitiveness, the UK can deliver the jobs, growth and decarbonization that is desperately needed," he concluded.
The decline in production came after US President Donald Trump imposed a 25% tariff on all car imports, including British vehicles, in April. However, in May, Trump signed an executive order reducing the tariff to 10% for the first 100,000 British cars imported annually.
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