UK vehicle production experienced its fifth consecutive month of decline, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

Production in May fell by 32.8% year-on-year, with a total of 49,810 vehicles produced, even lower than the April production figure of 59,203.

Excluding 2020, May 2025 was the worst performing May for vehicle production in the UK since 1949.

Commercial vehicle saw a decline of 53.6% year-on-year, due to the closure of Stellantis’ Luton plant, with a total of 2,087 commercial vehicles produced in May.

Commercial vehicle exports were worst hit, with a 71.7% decrease year-on year, while the domestic market shrank by 15.4%.

Despite car exports decreasing by 27.8% year-on-year in May, due in part to the impact of US tariffs, production for the domestic market fell by a larger 42.1%, with the SMMT attributing this to model changeovers and ongoing restructuring efforts.

US exports fell by 55.4%, mainly due to the short-lived additional 25% tariffs implemented by the Trump Administration, however the SMMT expects US sales to increase once the new trade agreement comes into effect.

Exports to the EU also fell by 22.5%.

Mike Hawes, chief executive at the SMMT, said: “While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginnings of some optimism for the future.

“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 recognise the critical role the sector plays in driving economic growth, should help recovery.

“With rapid implementation, particularly on the energy costs constraining our competitiveness, the UK can deliver the jobs, growth and decarbonisation that is desperately needed.”

This came as the Government unveiled its Industrial Strategy, which aims to put the UK in the top 15 countries for vehicle manufacturing by 2030.