UK car manufacturing falls in August

The SMMT (Society of Motor Manufacturers and Traders) has reported that British car manufacturing has fallen -5.3% in August. Figures released by the SMMT show that production is down to 103,232 units, continuing a trend of decline seen since April 2017.

Production for domestic and overseas markets is also down -4.4% and -5.6% respectively in the month. Some 1,106,285 vehicles have been produced in the first eight months of the year, showing an overall decline of -1.9%, and the domestic market for production has been down in seven out of eight months

Mike Hawes, SMMT Chief Executive, said: “It’s common to see fluctuations during the summer months, as output varies according to the timing and duration of holiday factory shutdowns. However, the continuation of the longer term downward trend in domestic demand is a concern for production across the UK so it is vital for the future health of this sector that the current uncertainty around Brexit is removed and consumer and business confidence restored.

However, commercial vehicle manufacturing has seen a boost, particularly in export with output rising to 3,744 vehicles.

Double-digit growth was seen in August, with 3,744 CVs built in Britain, an uplift of 17.6%, as overseas demand continued to drive production. Exports grew 61.7% thanks to increased EU demand, offsetting a decline in domestic output, which fell for the 15th consecutive month, by -13.0%.

Overall production for the year-to-date remains down on 2016, with output falling -9.4% as growing demand from overseas customers – up 8.2% in the first eight months – has failed to counteract losses in the domestic market. More than 33,524 vans, trucks and buses have been shipped abroad so far this year – mostly to EU markets – and exports now account for almost two thirds (62.1%) of UK CV production.

Mike Hawes, SMMT Chief Executive, said: “August CV production volumes are typically some of the smallest in the year and so, given the fluctuating nature of fleet buying cycles, caution is advised when making month by month comparisons. However, today’s figures highlight just how dependent the industry is on EU custom, and with UK demand continuing to fall, certainty on interim and future trading arrangements post Brexit is needed quickly in order to restore buyer confidence.”

 

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