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Figures show decline in UK car production

Date: 22 December 2017   |   Author: Sean Keywood

UK car manufacturing fell by 4.6% in November, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

161,490 cars left British factories last month, with this number boosted by overseas orders, which rose by 1.3%.

However, domestic demand fell by 28.1%, the largest decline in 2017. This meant the proportion of vehicles destined for export reached the highest percentage of the year (85%).

The SMMT blames the fall in home-grown demand on decreasing consumer confidence and speculation over negative government policies towards diesel.

For the year-to-date, more than 1.5 million cars have been made, but production for the home market decreased by 9%, with overall output down by 2%.

SMMT chief executive Mike Hawes said: "Brexit uncertainty, coupled with confusion over diesel taxation and air quality plans, continues to impact domestic demand for new cars and, with it, production output.

"Whilst it is good to see exports grow in November, this only reinforces how overseas demand remains the driving force for UK car manufacturing.

"Clarity on the nature of our future overseas trading relationships, including details on transition arrangements with the EU, is vital for future growth and success."