UK car production falls almost 10%

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The Society of Motor Manufacturers & Traders (SMMT) in the UK has revealed that car production in the UK has fallen by almost 10% despite 'strong demand'

Industry figures are showing a steep drop in the number of vehicles being manufactured in the UK for the domestic and export markets. The sharp drop is being blamed on factory preparations for the production of new models.

The car sector has been one of the most vocal in its opinions and demands on Brexit the referendum last year.

136,119 new cars were built and in percentage terms, the largest drop came from those produced for the domestic market as prices and taxes rise on many new vehicles.

The number of cars made for export also fell in the same period, even though, as a report for the CBI highlighted, the UK manufacturing sector's order books at their highest level since 1988.

Many companies in the UK who produce and manufacture are starting to feel the benefits of the weaker pound since the Brexit vote, as it makes their goods more competitive abroad.

This situation at the moment is quite good for the automotive industry in export terms as almost 80% of all cars made in Britain are exported, with more than half going to Europe.

The motor industry in Britain blamed the timing of Easter for a deeper plunge in production back in April.

Although there are some export benefits for UK car manufacturers exporting to the European market, they are keeping quiet on this and acting somewhat coy on the benefit from sterling, pointing out that its supply chain, which is mostly based in the EU, has raised its costs as the weaker pound makes imports more expensive.

Commenting on the latest figures, SMMT chief executive Mike Hawes said:

"After a record start to the year, car production in the UK has slowed as production lines gear up for a range of new models.

"Global demand is strong and exports remain the driving force for British car production volumes in the UK.

"Maintaining our current open trade links with Europe, our biggest market, and further developing global markets is vital for this sector."

(As always, if you or a family member are considering buying a used car, don’t buy until you run a car check report with where you will find out the true history of the vehicle.)


Justin Kavanagh
Justin Kavanagh is a recognised leader in automotive intelligence and vehicle data supply to the entire motor industry. He has almost 20 years experience in building systems from the ground up. As the Managing Director of Vehicle Management System, he understands the need and importance of trustworthy and reliable vehicle history and advice to both the trade and the public.
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