Trade body calls for ‘political and economic clarity’ after sharp reduction in UK demand

This article is more than 2 years old

This article is more than 2 years old

The number of cars built in UK factories slumped by 11% last month compared with a year ago.

Just over 121,000 cars left production lines, with a fall of 35% in models built for the UK, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Car production for export in July fell by 4.2%.

Despite the reduction, the sector remains on track to meet 2018 expectations, said the SMMT.

Just under 955,500 cars were built in the first seven months of the year, down by 16% for the UK market and 1.2% for export. This marks an improvement on June, when production for the UK plunged 47%, although there was a 6% rise in cars made for export.

Model changes, operational adjustments and preparations for new emissions standards affected output last month, said the SMMT.

Its chief executive, Mike Hawes, said: “While the industry is undoubtedly feeling the effects of recent uncertainty in the domestic market, drawing long-term conclusions from monthly snapshots requires a health warning.

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“The bigger picture is complex and month by month fluctuations are inevitable as manufacturers manage product cycles, operational changes and the delicate balance of supply and demand from market to market.

“To ensure future growth, we need political and economic clarity at home, and the continuation of beneficial trading arrangements with the EU and other key markets.”

The UK exports most of the cars made here. However, British buyers also get the majority of their vehicles from overseas, with about 86% of new cars being imported and 69% of new cars coming from the EU.