UK car manufacturing down 2.1% as increased exports fail to offset domestic decline

UK car manufacturing was down 2.1 per cent year-on-year in the first month of 2020, as an increase in exports failed to offset the decline in domestic demand.

Some 118,314 cars rolled off British production lines in January, down from 120,890 in the same month last year and marking the fifth consecutive month of decline.

Exports were up 4.1 per cent year-on-year to 97,870 units, thanks to a number of appealing new models being brought to market, driving demand in Europe and Asia, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

This wasn’t enough to prevent an overall decline, though, with demand from the domestic market falling by 23.9 per cent from 26,864 to 20,444 units as a result of weak consumer confidence. As such, the UK saw the weakest January for car production for nine years.

Mike Hawes, chief executive of the SMMT, commented: “Exports are the bedrock for UK car manufacturing so a rise in January exports is welcome following recent declining demand in overseas markets. These figures, however, still give great cause for concern, with another month of falling car production driven by a lack of confidence and corresponding weak demand in the UK.

Advertisement – Article continues below

“The upcoming Budget is an opportunity for the government to provide supportive measures to stimulate the market, but the biggest boost would be the agreement of an ambitious free trade deal with Europe. This would end the ongoing uncertainty and help the UK to recover its hard-won reputation as a great place for automotive investment.”

What do you think of the UK car manufacturing decline? Let us know in the comments below…

Next Post

UK petrol and diesel prices: cost of both fuel types drops

Mon Mar 9 , 2020
Petrol and diesel prices fell respectively by 3p and 4p per litre in February, following a drop in the wholesale cost of oil. The average price of a litre of unleaded is now 124.02p, while diesel is down to 127.04p per litre, according to the latest RAC Fuel Watch data. […]

You May Like