UK Automotive Industry Hits Post-War Crisis Low
New data from the Society of Motor Manufacturers and Traders (SMMT) reveals UK car production plummeted 32.8% in May 2025, sinking to just 49,810 units—the lowest May output since 1949 (excluding pandemic-affected 2020).
Key Findings from the SMMT Report
📉 Total vehicle production (May 2025): 49,810 (-32.8% YoY)
🚗 Car production: 47,723 (-31.5%)
🚛 Commercial vehicles: 2,087 (-53.6%)
🌍 Exports share: 78.5% (now dangerously high)
What Caused This Collapse?
1. US Trade War & Tariffs Hammer UK Exports
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Trump’s 25% tariffs on UK-made cars (March 2025) led to a 55.4% export drop in May.
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Luxury brands hit hardest:
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Jaguar Land Rover (UK’s biggest auto exporter) halted US shipments
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Aston Martin slashed exports
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Partial relief: US just dropped “revenge tax” (Section 899), easing pressure on UK firms.
2. Falling EU & Global Demand
🇪🇺 EU exports: -22.5% (still UK’s largest market)
🇨🇳 China exports: -11.5%
🇹🇷 Turkey exports: -51%
3. Domestic Market Weakness
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UK buyers pulled back (-42.1% production for home market)
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Reasons:
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Economic uncertainty
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High interest rates
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EV transition disruptions (factories retooling)
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4. Commercial Vehicle Catastrophe
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Stellantis Luton factory closure (March 2025) wiped out 1,200 jobs
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Van exports to EU: -72.1%
Is There Hope for Recovery?
✅ New UK-US Trade Deal (10% Tariffs)
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Covers 100,000 UK vehicles/year (vs. 25% before)
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Aston Martin has resumed US shipments
✅ £2.5bn UK Automotive Rescue Package
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Industrial Strategy tackles high energy costs
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R&D funding boost for EV transition
⚠️ Long-Term Challenges Remain
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Brexit trade frictions still hurting EU exports
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Global EV race pressures traditional automakers
What Experts Are Saying
Mike Hawes, SMMT Chief Executive:
*”2025 has been brutal, but new US/EU trade deals and government support offer hope. The sector remains vital to UK growth.”*
Industry Analysts Warn:
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Without faster EV investment, UK risks falling behind Germany & China
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More factory closures possible if demand doesn’t rebound
The Bottom Line
🔴 Worst production slump since 1949
🟡 US tariff rollback helps, but 10% rate still painful
🟢 Government aid & trade deals could stabilize sector
#UKcars #AutomotiveCrisis #TradeWar #Brexit #ElectricVehicles #JaguarLandRover #AstonMartin
Want deeper analysis? [Download our full UK auto industry report] (CTA link)
Why This Matters for the UK Economy
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£93 billion annual turnover at stake
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813,000 jobs depend on automotive sector
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Rolls-Royce, JLR, Bentley define UK manufacturing prestige
Will 2026 bring recovery—or more decline? Follow for updates.
