UK light commercial vehicle production continued to fall in May, but the rate of decline eased for a second consecutive month as exports recovered strongly.
Latest figures from the Society of Motor Manufacturers and Traders (SMMT) show UK manufacturers built 1,929 commercial vehicles during May, a fall of 7.6% compared with the same month last year.
While still in negative territory, the result marks a further improvement on April, when output declined by 10.9%. At the time, the SMMT said the closure of one of Vauxhall's Luton plant was having a diminishing impact on production volumes, and May’s figures suggest that trend is continuing.
Exports were the bright spot during the month.
Commercial vehicle shipments overseas rose by 61.0% to 1,391 units, helping to offset weak domestic demand. Production for the UK market, however, fell sharply by 56.0% to just 538 vehicles.
The figures mean more than seven in every 10 commercial vehicles built during May were destined for export markets.
Despite the improving monthly trend, the year-to-date picture remains challenging.
Between January and May, UK manufacturers produced 11,506 commercial vehicles, down 60.0% compared with the same period in 2025. The decline continues to reflect the restructuring of UK van manufacturing following the closure of one of the country’s major production facilities.
The latest figures come after April’s results hinted that the worst of the production slowdown could be over. Although overall UK vehicle output slipped by 1.2% during April, commercial vehicle production recorded its smallest year-on-year decline for 13 months.
Whether that marks the beginning of a sustained recovery remains uncertain.
The SMMT says the long-term outlook for UK vehicle manufacturing depends on improving competitiveness, with lower industrial energy costs, continued tariff-free trade with the European Union and regulations that better reflect market demand for electric vehicles.
The organisation has also renewed calls for the UK and EU to avoid introducing additional trade barriers, warning that proposed “Made in Europe” rules and tougher rules of origin requirements from 2027 could undermine manufacturers on both sides of the Channel.
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-world conditions would support decarbonisation, strengthen the market, and help unlock the investment needed for long-term economic growth.”
While UK van production remains significantly below last year’s levels, May’s figures provide another indication that the steep declines seen earlier in 2026 are beginning to moderate. The key question now is whether improving export demand can translate into a broader recovery for the UK’s light commercial vehicle manufacturing sector during the second half of the year.
