UK’s auto industry faces its worst downturn in decades
(MENAFN) The British automotive sector is experiencing a significant downturn, with vehicle output in May dropping 32.8 percent year-on-year to just 49,810 units—the lowest for the month since 1949, aside from disruptions caused by the 2020 pandemic. This marks the fifth month in a row of declining production, according to industry figures.
Analysts largely blame the steep fall on the impact of import tariffs imposed by the U.S. administration, which have severely disrupted supply chains and weakened the global competitiveness of the UK auto industry.
David Bailey, a business economics professor at the University of Birmingham, characterized the situation as a "storm" pushing the sector into a "low-volume crisis." He noted that production is currently far below capacity while rising costs are eroding the industry’s competitive edge.
Similarly, Jim Saker from Loughborough University highlighted that the uncertainty created by the U.S. tariffs has unsettled supply chains and left manufacturers hesitant to commit to new investments, adding to the industry's challenges.
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