Currently reading: UK car production falls due to slump in overseas demand
Chinese market struggles fuel eighth straight month of UK car manufacturing decline
James Attwood, digital editor
News
2 mins read
28 February 2019

British car production declined by 18.2% in the first month of 2019, sparked by a significant fall in demand from China and Europe.

According to figures from the Society of Motor Manufacturers and Traders (SMMT), Britain produced 120,649 cars in January, 26,858 fewer than in the same month of 2018. It is the eighth consecutive month in which production has declined in the UK.

While the number of cars manufactured for the domestic market fell by 4.8%, the bulk of the decline came from the export market, which fell by 21.4%. Demand for British-built cars in China declined by 72.3%, with exports to the 27 other European Union member states down 20%.

The news is another blow for the UK car industry, following Jaguar Land Rover’s recent losses – which it attributed in part to its struggles in China – and Honda’s recent decision to close its Swindon factory.

SMMT boss Mike Hawes said that the industry faces “myriad challenges”, including falling demand and the threat of a trade war. But he added the “clear and present danger” remains the continued risk of a no-deal Brexit. He said preparing for that prospect was “monopolising time and resources, undermining competitiveness”.

He added: “Every day a no-deal Brexit remains a possibility is another day automotive companies pay the price in additional and potentially pointless costs.”

Read more

Ex-Honda UK boss on why Swindon plant is shutting

UK car manufacturing falls 9% as investment plummets in 2018

Jaguar Land Rover posts £3.4 billion loss in final quarter of 2018

UK car registrations fall 6.8% in 2018

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17

28 February 2019

Watch how the clowns blame this on brexit.

First there were Remainers, then the extreme became Remoaners, now they just become a bunch of Ret4rds

should be done for treason.

28 February 2019

The ones who should be done for treason aren't actually the remainers. 

Must have been a typo I guess.

28 February 2019

Maybe Mainland Europeans can't afford new cars anymore what with their high unemployment and badly performing economies, cases in point Italy now officially in recession, Germany only just avoiding recession due to tasteful book keeping.

28 February 2019

I know!  The British media have largely failed to explain how Germany avoided recession in January, so I'll 'reveal' it here - it's called 'skin of teeth':

The German economy is so weak that it may have avoided going into recession in Q4 2018 simply because the quarter contained one extra day than the previous period!

To its credit, the truly awful Daily Mail reported that, but the BBC didn't.  What a surprise?  They reported that it was close, but didn't explain how and why Germany avoided it.

28 February 2019

Mike Hawes says:

“Every day a no-deal Brexit remains a possibility is another day automotive companies pay the price in additional and potentially pointless costs.”

And yet he knows full well that the uncertainty over Brexit (caused ENTIRELY by our elected MPs - no matter what your view on Brexit, that is a fact) has zero to do with these latest figures.  Absolutely zilch - just like the Honda joke.  Let me state for the gimps who can't read, lest they mouth off:

"...the bulk of the decline came from the export market, which fell by 21.4%. Demand for British-built cars in China declined by 72.3%, with exports to the 27 other European Union member states down 20%."

So, before you comment, just read that bit again.  I'll fully admit that the costs of cars produced in Britain MAY rise if we don't get a deal (though it would be worth it), but Brexit hasn't happened!  These figures are for an EU country wich is still in the EU - very much in it!  Only when we leave could you poosibly make an economic statement based on facts THEN, not now, THEN.  So all Mike Hawes exhibits is his gross stupidity.  This is a man in charge of a large organisation!  You have to ask how did a man of evidently-limited intelligence get the job?

28 February 2019

To put some fact behind this report it should compare european production of large diesel powered SUV's.  Yes, production is down in the UK but also down in mainland Europe so it's not a Brexit problem, if the Brexit excuse can be removed from every arguement then the real reasons  can be investigated, solutions found and business models changed.

The last time I looked at the figures JLR was doing pretty well in Europe, second only to Volvo, and the 72% deline in China is nothing to do with Brexit.

 

28 February 2019
chris1969 wrote:

To put some fact behind this report it should compare european production of large diesel powered SUV's.  Yes, production is down in the UK but also down in mainland Europe so it's not a Brexit problem, if the Brexit excuse can be removed from every arguement then the real reasons  can be investigated, solutions found and business models changed.

The last time I looked at the figures JLR was doing pretty well in Europe, second only to Volvo, and the 72% deline in China is nothing to do with Brexit.

 

exactly. The sales in China are down purely because of the tariff war between China and USA. Did you know that if you take out the decline of sales in JLR from the China region then year on year sales of JLR were actually up. However as China is such a large portion of sales, it pulled the total sales YOY into the red.

28 February 2019
GODFATHER wrote:

chris1969 wrote:

To put some fact behind this report it should compare european production of large diesel powered SUV's.  Yes, production is down in the UK but also down in mainland Europe so it's not a Brexit problem, if the Brexit excuse can be removed from every arguement then the real reasons  can be investigated, solutions found and business models changed.

The last time I looked at the figures JLR was doing pretty well in Europe, second only to Volvo, and the 72% deline in China is nothing to do with Brexit.

 

exactly. The sales in China are down purely because of the tariff war between China and USA. Did you know that if you take out the decline of sales in JLR from the China region then year on year sales of JLR were actually up. However as China is such a large portion of sales, it pulled the total sales YOY into the red.

 

Nope, that's utter rubbish also.

While the car market as a whole in China collapsed last year, BMW and Mercedes actually saw increases in the sales of their premium products (those competing with JLR).

JLR's woes in China are nothing to do with external forces, and everything to do with JLR's poor quality due to piss poor management:

https://europe.autonews.com/automakers/jaguar-land-rover-hurt-quality-control-issues-china

28 February 2019
CarNut170 wrote:

GODFATHER wrote:

chris1969 wrote:

To put some fact behind this report it should compare european production of large diesel powered SUV's.  Yes, production is down in the UK but also down in mainland Europe so it's not a Brexit problem, if the Brexit excuse can be removed from every arguement then the real reasons  can be investigated, solutions found and business models changed.

The last time I looked at the figures JLR was doing pretty well in Europe, second only to Volvo, and the 72% deline in China is nothing to do with Brexit.

 

exactly. The sales in China are down purely because of the tariff war between China and USA. Did you know that if you take out the decline of sales in JLR from the China region then year on year sales of JLR were actually up. However as China is such a large portion of sales, it pulled the total sales YOY into the red.

 

Nope, that's utter rubbish also.

While the car market as a whole in China collapsed last year, BMW and Mercedes actually saw increases in the sales of their premium products (those competing with JLR).

JLR's woes in China are nothing to do with external forces, and everything to do with JLR's poor quality due to piss poor management:

https://europe.autonews.com/automakers/jaguar-land-rover-hurt-quality-control-issues-china

Emm you need to compare like with like.   Mercedes make the A (cheap renault tat) C and E class, the GLA and GLC in China and have for some time so are well estabished.

Land Rover only make the Evoke and Discovery Sport in China whilst Jaguar only do the XFl and have only JUST started making the E-Pace in China.

So obviously Mercedes will be less effected by any potential/ real tariff wars as they make most of their models in China and are well estabished.

28 February 2019

Just looked on the ACEA site for the latest numbers

Year on year figures

  • VW -6.5% with Porsche -50%
  • Fiat Chrysler - 15% with Fiat -20%
  • Nissan -26%
  • Honda -14%
  • JLR -5.7% with LR down 8% and Jag +0.4%.  JLR maintained it's 1.3% share of the European market

On markets, big losers are Spain -8% and Italy -7.5%

Not really a Brexit issue

 

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