(Sharecast News) - UK vehicle production rose 2.7% in May driven by overseas orders, which recovered from last year's US-tariff uncertainties, but pressure remain due to the war on Iran, according to official data published on Thursday.
Production last month increased to 51,178 units, said the Society of Motor Manufacturers and Traders (SMMT). Car output grew 3.2% to 49,249 units, reversing four months of decline, while commercial vehicle (CV) volumes fell 7.6% to 1,929 units.

The stronger overall performance was driven by overseas orders, which recovered following a 30.3% decline in May last year when US tariff uncertainty pushed volumes to the lowest level since Covid-hit 2020.

Exports rose 3.9% to 38,897 units, while CV shipments increased 61.0% to 1,391 units, delivering an overall 5.2% outbound trade boost. Car production for the UK market was broadly stable, up 0.7% to 10,352 units, while CV output for UK buyers fell -56.0% to 538 units.

Shipments to the US surged 83.1% to 7,733 units, reflecting the US-UK trade deal that came into force in June 2025. Exports to the EU fell 5.2% to 20,057 units, while those to China were down 14.3% to 2,794 units.

In the first five months, UK factories have produced 317,779 vehicles, down 8.7% year on year, with car output declining by 4.1% and CV production by 60.0%. Exports account for 76.4% of all vehicle production so far this year, with almost a quarter of a million (242,792) units shipped overseas, the SMMT said.

SMMT chief executive Mike Hawes said: "May's growth is welcome, and the priority must be to turn this into a sustained recovery by making the UK more competitive as a place to make and sell vehicles. That means reducing industrial costs, maintaining free and open trade with the EU, and ensuring the ZEV mandate reflects market reality."

"Manufacturers are investing billions in zero emission technology, but weak underlying demand and the growing cost of compliance are putting competitiveness, jobs and future investment at risk. A mandate aligned with real-word conditions would support decarbonisation, strengthen the market, and help unlock the investment needed for long-term economic growth."

Reporting by Frank Prenesti for Sharecast.com

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