British car production grew 3.2% in May, reaching 49,249 units, according to figures published Thursday by the Society of Motor Manufacturers and Traders. The increase reversed four consecutive months of decline and was driven largely by a recovery in overseas demand.
Overall vehicle production, including commercial vehicles, rose 2.7% to 51,178 units. Commercial vehicle output fell 7.6% to 1,929 units for the month, partially offsetting the gains in car production.
Exports were the primary driver of the improvement. Car exports rose 3.9% to 38,897 units. The United States was the strongest single market, with shipments jumping 83.1% to 7,733 units. SMMT attributed that increase to the US-UK trade deal that came into force in June 2025. Exports to the European Union fell 5.2% to 20,057 units. Exports to China dropped 14.3% to 2,794 units.
The May rebound follows a sharp drop in the same month last year, when US tariff uncertainty pushed volumes to their lowest level since the COVID-hit year of 2020. That comparison made for a relatively easy baseline for this May's figures.
Production for the domestic UK market was broadly flat, up just 0.7% to 10,352 units. Commercial vehicle output for UK buyers fell 56.0% to 538 units.
For the first five months of 2026 combined, UK car output remains 4.1% below last year's pace, at 319,000 units. GlobalData analysis projects total UK car output for the full year at under 800,000 units, still well below pre-pandemic levels.
Mike Hawes, SMMT Chief Executive, 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."
The next set of monthly production figures from SMMT is expected in late July.
