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UK car manufacturing hit by ongoing downturn in domestic demand

UK car manufacturing fell 4.6% to 161,490 cars in November as Brexit uncertainty and new diesel taxes impacted on domestic demand.

SMMT - Car Output - Rolling Year Totals

SMMT – Car Output – Rolling Year Totals

Although exports were up 1.3% last month according to figures from the Society of Motor Manufacturers and Traders (SMMT), domestic demand fell 28.1%, marking the fourth consecutive month of decline and the largest fall this year.
Year-to-date, although export volumes remain stable, production for the home market is down 9.0%, resulting in overall output falling 2.0% for the first 11 months of the year to a total of 1,577,042 compared to 1,608,722 for the same period in 2016.

Commenting on the figures for last month, Mike Hawes, SMMT chief executive, said, “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.”

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 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. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.