UK car production declines 16.8% year on year in September
25 October 2018

The Society of Motor Manufacturers and Traders has called on the Chancellor to introduce policies to help stimulate the car market in the forthcoming Budget, after UK car production fell 16.8% year on year in September.

According to SMMT data, 25,610 cars were produced on UK production lines last month, with demand for British-built cars falling 19.0% domestically and by 16.2% in overseas markets.

While the sharp decline for September can be linked to falling sales in Europe due to new WLTP testing, overall UK car production so far this year is down 6.6% compared with the same period last year, with 1,171,765 cars produced. Sales of British-built cars in the UK have fallen by 18.6% in the same period, while exports, which account for 951,448 cars, have declined by 3.3% year on year.

SMMT boss Mike Hawes said the figures “highlight the many competing challenges facing UK Automotive”, citing global trade wars, Brexit and the decline of diesel.

Hawes again called for the British Government to secure a Brexit agreement that allows for frictionless trade with the EU, but he said it also needed to promote stability at home.

Saying that a stronger UK car market “would go a long way to boosting manufacturing output”, Hawes said: “The Chancellor’s Budget [on 29 October] is the perfect opportunity to stimulate the market, sending consumers and businesses the right signals to encourage the purchase of new cars, which would help bolster economic performance as well as delivering environmental goals.”

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Comments
6

25 October 2018

Despite the fact that sales have fallen 16.2% in overseas markets, we'll still get the intellectually-challenged people on here (the usual suspects) who will blame Brexit - like Earth's climate change is also to blame for the changing climate on Mars.  Hawes has already started it off for them...

I say my bit, then go. So although I'm interested in what you may initially say, I don't care what you think about what I've written, so I won't read whatever your reply is.

25 October 2018

“the intellectually challenged who will blame Brexit”

A big problem with the Brexit ‘debate’ is exactly this kind of nonsense.

It really is time to get beyond this tripe...

25 October 2018

Every British industry is challenged at the moment so not sure why SMMT thinks the automotive sector should be a special case.

If I were the chancellor, I'd direct Mr Hawes to the Autocar article by Tom Morgan on 24th Oct re: Swedish firm Uniti One planning to start car production in the UK by 2020. If a Swedish company has selected the UK for production then...  Perhaps Mr Hawes should look toward the products his members are manufacturing to see reason for the decline.

Anyway what does he expect government to do - resolve Mr Trump's trade wars; ignore the UK public's vote for leaving the EU; ignore the issues surrounding diesel and expect UK automotive workers to take a 50% pay cut so they can become compeditive with India, Slovenia and Singapore?

25 October 2018

“Do I buy a new diesel? Petrol? Hybrid? Electric?” ... [looks at current car] ... “F*ck it - I’ll just live with what I’ve got until this all shakes out”. Cue low sales of cars....

25 October 2018

New car sales down in the uk, my wifes mii was bought on pcp which ended this year,  we have decided to keep it as if we change for another, aside from getting a new car we would be paying £140 tax as opposed to £20 our older car is charged, why would we want to change? I wonder if the new car tax system has played a part in the reduction of new cars purchased in the uk from all manufacturers, not just British built.

25 October 2018

there's nothing going on that isn't normal. search for "uk car production figures" and look for tradingeconomics, then put the graph on 10Y (10 years). Car production goes up and down all the time, put it on max and see what it's been like since the 1970s. Can everyone stop panicing about normal things? 

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