Car production down 6.7% in October due to global economic uncertainty

The SMMT added that global economic uncertainty is affecting demand, but the outlook is still positive, with all-time record production levels expected within the next few years.

Around 80% of UK-built cars are exported, with the diverse product mix giving a 50/50 split between EU and non-EU exports.

‘The UK’s car manufacturing industry is still in a strong position in spite of the growing uncertainty surrounding the global economy,’ said Mike Hawes, SMMT chief executive. ‘Billions of pounds have been invested into UK facilities in the past two years, with several new models starting production this year and more in the pipeline. There is still demand for UK-built products given their reputation for quality, design and engineering excellence.’

Commenting on the figures, John Leech, KPMG’s UK head of automotive, said: ‘The surprising fall in UK car production in October was due to weakening export demand and a higher amount of lost production days arising from supplier issues. I do not expect this downward trend to continue as planned model launches should see UK production rising towards 2 million cars sold in 2017.’

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.