UK auto output rises as U.S. exports grow in May

Traders Union
All News
Financial News
UK auto output rises in May

Highlights

UK vehicle production rises 2.7% year on year in May to 51,178 units, with U.S. exports surging 83.1% and EU exports declining 5.2%.
Year-to-date vehicle output falls 8.7% to 317,779 units, as weak electric vehicle demand and high energy costs continue to pressure the sector.
SMMT warns EU 'Made in EU' rules and post-Brexit origin requirements from 2027 may restrict UK auto exports and dampen investment amid intensifying China EV competition.

May production rebound and export mix

SMMT said Britain's vehicle production rises 2.7% year on year in May to 51,178 units, ending a four-month run of declines. Car output increases 3.2% to 49,249 units, while commercial vehicle production falls 7.6% to 1,929.

The recovery is supported by a sharp increase in shipments to the U.S., which jump 83.1% last month. By contrast, exports to the EU and China decline 5.2% and 14.3% respectively.

Despite the monthly improvement, output in the first five months of the year remains lower. Total vehicle production falls 8.7% to 317,779 units over that period.

Cost and trade pressures cloud outlook

The industry group says high energy costs, trade risks and weak demand for electric vehicles still threaten the sector's position. SMMT CEO Mike Hawes says manufacturers are investing billions in zero-emission technology, but weak underlying demand and rising compliance costs are putting competitiveness, jobs and future investment at risk.

SMMT also warns that the European Union's proposed "Made in EU" policy and stricter rules of origin under the post-Brexit trade deal from 2027 could limit access for UK-built vehicles to the bloc. The group adds that conflict in the Middle East threatens to push energy costs higher, while uncertainty over the EU proposal could weigh on investment as competition from lower-cost Chinese EVs intensifies.

The EU remains Britain's largest export market for vehicles. SMMT and carmakers are seeking clarity on whether UK-made vehicles would be excluded from the latest proposal.

In our earlier coverage of Prologis’ all-stock bid for SEGRO, we outlined how SEGRO’s board unanimously rejected the £12.6bn approach after it was made public, underscoring both execution risk and the prospect of a prolonged UK takeover timetable stretching into 2026. We also noted that deal uncertainty was colliding with weaker near-term technical signals in Prologis’ shares, leaving market direction highly sensitive to negotiation headlines and broader UK sentiment.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.