UK car production increased by 3.2% year-on-year to 49,249 units in May 2026, rebounding from a 0.7% decline in the previous month. This marked the first month of rise since last December, as overseas demand improved while domestic production remained broadly stable. The recovery in exports helped lift overall vehicle manufacturing despite lingering uncertainty surrounding global trade conditions and the impact of tariffs. Car exports strengthened during the month, with the United States recording the largest increase among major export markets, surging 83% to 7,733 units, supported by the implementation of the US-UK trade agreement. However, exports to the European Union, the UK's largest market, declined 5.2% to 20,057 units, while shipments to China fell 14% to 2,794 units. Overall UK vehicle production rose 2.7% to 51,178 units, while commercial vehicle output dropped 7.6% to 1,929 units.