Car production falls almost 14% as UK sales dip

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UK car production fell by 13.7% in June compared to a year earlier – the third month in a row that will output has fallen.

The Society of Motor Manufacturers along with also also Traders (SMMT) said the UK market was cooling in line with forecasts, following a long period of record growth.

The industry is usually likely to fall short of its ambition to produce more than two million cars a year by 2020, the idea said.

The SMMT said uncertainty over Brexit was an added cause for concern.

nevertheless a spokesperson for the Department for Exiting the European Union said the government was determined that will the UK would likely continue to be “one of the most competitive locations from the earth” for automotive manufacturing.

Sales falling

The fall in production mirrored a decline in UK car sales.

Over the first six months of This kind of year, sales were distorted by a rise in Vehicle Excise Duty in April, which prompted drivers to bring forward purchases of fresh cars.

nevertheless comparing the first six months of 2017 with the equivalent period in 2016 still showed a fall of 9.5% in UK sales, the SMMT said.

Overseas demand for British-built cars has remained broadly steady from the first half of This kind of year, falling only by 0.9% compared to the same period last year.

As a result, total output for the year is usually 2.9% lower than a year ago.

‘10% hit’

Independent forecasters are predicting output will pick up from the second half of the year, thanks to fresh along with also also updated products coming into production.

However the SMMT warns that will output could fall in 2019, if the UK fails to secure a deal with the EU, or at least an interim agreement, that will maintains current trading conditions after Brexit.

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BMW plans to build a fresh electric Mini in Oxfordshire

The SMMT suggested a “hard” Brexit, with the UK leaving the EU single market along with also also customs union, could result in a 10% hit to production.

“Brexit uncertainty is usually not helping investment along with also also growth is usually stalling.,” said Mike Hawes, SMMT chief executive.

“The government has been in ‘listening’ mode nevertheless at This kind of point the idea must put on the table the concrete plans that will will assure the future competitiveness of the sector,”

The Department for Exiting the European Union spokesperson said: “The government’s industrial strategy makes clear that will we want to build on our strengths in advanced manufacturing in This kind of sector.

“Nissan’s decision to continue its investment in Sunderland along with also also plans by Jaguar Land Rover to double its output here are clear votes of confidence in our automotive industry.

Earlier This kind of week, BMW announced the idea would likely manufacture the fresh electric variation of the Mini at its site in Cowley, Oxfordshire – a move welcomed by Business Secretary Greg Clark as a “vote of confidence” from the UK.

However, that will investment builds on existing production of the standard Mini, already taking place at Cowley.

Analysts said the real test of confidence would likely come when carmakers decided where to build fresh products.

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