UK car industry experiences worst decline since 2001 in July
By Caoimhe Toman
Date: Thursday 29 Aug 2019
(Sharecast News) - The UK car industry recorded its worst performance since 2001 in July with output falling at a year-on-year pace of over 10%.
British car manufacturers' output shrank by 10.6% in July with only 108,239 new vehicles rolling off assembly lines, marking a 14th consecutive month of declines.
According to the Society of Motor Manufacturers and Traders (SMMT), the weakness was chiefly the result of key model changes in some major EU and Asian markets.
Exports declined at a 14.6% pace, although eight out of every 10 new cars was still being shipped overseas. Domestic demand on the other hand increased by 10.2% on the back of favourable comparators versus a year ago, when multiple factors, including preparation for WLTP, depressed output.
Year-to-date, some 774,760 cars had been made in Britain, 180,864 or 18.9% less than over the same stretch of 2018.
Mike Hawes, SMMT Chief Executive, said, "Another month of decline for UK car manufacturing is a serious concern. The sector is overwhelmingly reliant on exports and the global headwinds are strong, with escalating trade tensions, softening demand and significant technological change.
"With the UK market also weak, the importance of maintaining the UK's global competitiveness has never been more important so we need a Brexit deal - and quickly - to unlock investment and safeguard the long term future of a sector which has recently been such an international success story."
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