The UK’s light commercial vehicle (LCV) production saw a large decline in May, with output dropping a dramatic -53.6% to just 2,087 units.
That's according to the latest data from the Society of Motor Manufacturers and Traders (SMMT) whose data shows that this sharp downturn is the fifth consecutive month of falling vehicle production.
The steep drop is largely attributed to the closure of the Vauxhall Luton plant, a major UK commercial vehicle manufacturing plant, which has severely affected year-on-year comparisons.
Export volumes of vans, buses, coaches, taxis, and trucks also suffered, plunging by -71.7%. The European Union remained the sector’s dominant export destination, accounting for 94.7% of shipments, though even these volumes declined by -72.1%.
Consequently, the export share of total commercial vehicle production fell from 67.9% to 41.4%, shifting the primary focus to the domestic market.
Despite these setbacks, industry leaders remain cautiously optimistic. The government’s recent trade agreements with the US, EU, and India, alongside strategic industrial initiatives, aim to revitalise the sector. Although the production levels of the Luton plant are unlikely to be increased any time soon, competitive energy costs, enhanced market access, and measures to stimulate domestic demand will all be crucial in reversing downturn in van production.
Mike Hawes, SMMT chief executive, said, “While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginning 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.”
Additional LCV production will resume at Ellesmere Port, the site of a new electric van hub, which will see all of the Stellantis models produced there.
While commercial vehicles bore the brunt of the decline, car production also slumped by -31.5% in May, driven by ongoing model changeovers, corporate restructuring, and the impact of US tariffs.
Total vehicle output for the year to date is down -12.9%, marking the lowest figures since 1953.
