Exports surge as UK van production shortfall reduces in May
UK van-making is still limping below last year’s pace, but the worst of the damage is beginning to look less severe. May’s production figures from the Society of Motor Manufacturers and Traders point to a market that is still under pressure, yet no longer sliding quite as fast as it was earlier in the spring. Output dipped again, but the rate of decline eased for a second month running, and exports did the heavy lifting. (smmt.co.uk)
UK manufacturers built 1,929 commercial vehicles in May 2026, down 7.6 per cent on the same month last year. That’s still a disappointing number, but it is notably softer than April’s 10.9 per cent fall, suggesting the shock from the closure of one of Vauxhall’s Luton van facilities is continuing to fade through the system. In other words: the pain is still there, but the wound is no longer quite as fresh. (smmt.co.uk)
The real headline, though, is exports. Overseas shipments jumped 61.0 per cent to 1,391 units in May, helping to keep the lights on while domestic demand fell away sharply. UK-market production slumped 56.0 per cent to just 538 vehicles, meaning more than seven in every ten commercial vehicles built in Britain last month were destined for export markets. That is not exactly a sign of a healthy home market, but it does underline how dependent the sector remains on foreign demand. (smmt.co.uk)
On a year-to-date basis, the picture remains bruising. Between January and May, UK commercial vehicle production totalled 11,506 units, a steep 60.0 per cent decline compared with the same period in 2025. SMMT says that collapse continues to reflect the restructuring of van manufacturing after the closure of a major production site, and while the monthly trend is improving, the sector is still a long way from normal running. (smmt.co.uk)
There are at least some signs that the slide is bottoming out. April’s production data already hinted that the worst may have passed, with commercial vehicle output recording its smallest year-on-year decline for 13 months. May now adds a second consecutive month of easing losses, which is not recovery as such, but it is the sort of movement that can precede one. (smmt.co.uk)
Still, this industry does not run on hope alone. SMMT has been clear that a proper rebound will depend on a more competitive operating environment: lower industrial energy costs, continued tariff-free trade with the European Union, and regulation that better reflects the realities of the electric van market. The trade body has also renewed its warning that tougher rules of origin from 2027, alongside proposed “Made in Europe” measures, could create fresh friction for manufacturers on both sides of the Channel. (smmt.co.uk)
Chief executive Mike Hawes struck the same note, welcoming May’s growth but stressing that it must be turned into something more durable. His message is basically the same one the sector has been repeating for months: cut the cost of doing business, keep trade open, and make sure the ZEV mandate is aligned with reality rather than wishful thinking. Electric-vehicle investment is already running into the billions, but weak underlying demand and the cost of compliance are clearly squeezing margins, confidence and future plant decisions. (smmt.co.uk)
For now, the encouraging bit is simple enough. UK van production is still deeply down on last year, but the pace of decline is easing and exports are back in the game with some force. If that momentum holds into the second half of 2026, the sector may finally be moving from damage control towards something a little more respectable. If not, May will end up looking like a brief and welcome pause rather than the start of a genuine turnaround. (smmt.co.uk)
