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UK car manufacturing decline continues as domestic and export demand slips
(WebFG News) - UK car production continued to declined last month, with domestic and export demand seen to slow, according to a report released by the industry on Thursday.
Almost 147,500 new cars were built in British factories in March, down 13.3% year-on-year, as the domestic market continued to slow, with demand falling 17.7%, while exports also declined 11.9% due to fluctuations in demand in several global markets. Some slowdown in operations was due to manufacturers being hit by adverse weather conditions as the end of the 'Beast from the East' lingered into the month.
Mike Hawes, chief executive of SMMT, said, "A double-digit decline in car manufacturing for both home and overseas markets is of considerable concern."
Overall, output in the first quarter of 2018 fell 6.3% year-on-year, with 440,426 cars leaving production lines in total, almost 80% of which were exported despite demand from overseas customers dropping 4.0% year-to-date, while UK demand dropped 14.1% so far this year.
Following recent announcements on jobs cutbacks in the sector, Hawes lobbied the government to provide "greater certainty" to the industry and consumers about future policies towards diesel and other low emission technologies, and our post-Brexit trading relationships and customs arrangements.
"Maintaining free and frictionless trade is an absolute priority - it has been fundamental to our past success and is key to our future growth," he said.
Britain's vehicle and component manufacturers are important contributors to the economy, responsible for 13.0% of all exports of goods. The SMMT calculates that for every pound generated by the industry, three pounds are delivered to the economy via adjacent sectors such as logistics, retail and finance, while also estimating that the total economic impact of the industry at £219bn, or 10% of the UK's GDP.