UK automotive companies are today urging all politicians to do whatever it takes to avoid a ‘no deal’ Brexit as latest figures from the Society of Motor Manufacturers and Traders (SMMT) show British car production fell to its lowest level for five years in 2018. 1,519,440 new cars left UK factories, a decline of -9.1%, and the second consecutive annual fall as the sector faces multiple challenges.
The news comes as SMMT also reveals that fresh inward investment in the sector plummeted in the year – down almost half (-46.5%) on 2017 to just £588.6 million, amid fears over the UK’s future trading prospects with the EU and other key global markets after 29 March.2
In 2018, production for the UK fell -16.3% as regulatory changes and ongoing uncertainty over future diesel policy and taxation were exacerbated by declining consumer and business confidence. Exports were also down, with output for overseas markets dropping -7.3% as slowdowns in important European and Asian markets took effect. UK car exports to China slumped -24.5%, while EU demand fell by -9.6%, less steep than the decline at home, with registrations of British-built cars in the UK down -20.9% in the year. Overall, EU27 countries still accounted for the vast majority of UK exports (52.6%) – amounting to 650,628 cars.
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SOURCE: SMMT