LONDON -- UK car output fell 14 percent in March to 126,195, the 10th consecutive monthly drop, as a slowdown in key foreign markets and insecurity caused by Brexit hit demand, the Society of Motor Manufacturers and Traders said in a statement on Tuesday.
The industry body repeated its warning that the sector stands to suffer a lot more if the country leaves the European Union without a deal as politicians continue to seek consensus on an agreement.
Exports, which account for nearly four out of every five cars made in Britain, were down by 13 percent.
The SMMT said analysis it had commissioned predicted output would fall this year to 1.36 million vehicles from 1.52 million in 2018, assuming London can secure a transition deal with the EU.
"Just a few years ago, the industry was on track to produce 2 million cars by 2020 -- a target now impossible with Britain's reputation as a stable and attractive business environment undermined," SMMT CEO Mike Hawes said in the release. "All parties must find a compromise urgently, so we can set about repairing the damage and diverting energy and investment to the technological challenges that will define the future of the global industry."
If Britain has to rely instead on World Trade Organization rules, which include import tariffs, for its trade with the bloc then output is forecast to fall by about 30 percent to 1.07 million vehicles in 2021, returning to number last seen in the mid-1980s, the SMMT said. The forecasts were produced for the SMMT by consultancy firm AutoAnalysis.
