March decline for UK car manufacturing

The latest figures from the Society of Motor Manufacturers and Traders (SMMT) report that UK car production declined in March, with demand falling -13.3% year on year.

The output for home market falls for eighth consecutive month, by -17.7%, with exports also dropping -11.9%.

147,471 cars were built in British factories as the domestic market continued to slow, with demand falling -17.7%.

Q1 manufacturing down -6.3% year on year to 440,426 units, with eight in 10 shipped overseas.

The SMMT also reports that exports declined, down -11.9% due to fluctuations in demand in some global markets. In addition, some manufacturers were impacted by the adverse March weather conditions which negatively affected production operations.

Overall output in the first quarter of 2018 fell -6.3%, with 440,426 cars leaving production lines in total this year. Almost 80% of these were exported, and while demand from overseas customers fell -4.0% in Q1, this was dwarfed by the -14.1% decline in manufacturing for the UK market.

Commenting on Brexit and the need for frictionless trade, Mike Hawes, SMMT Chief Executive, said,

“A double digit decline in car manufacturing for both home and overseas markets is of considerable concern. Following recent announcements on jobs cutbacks in the sector, it’s vitally important that the industry and consumers receive greater certainty, both about future policies towards diesel and other low emission technologies, and our post-Brexit trading relationships and customs arrangements.

“Maintaining free and frictionless trade is an absolute priority – it has been fundamental to our past success and is key to our future growth.”