Data issued by the SMMT shows that UK car manufacturing fell 6.7% in October to 150,060 units, leaving year-to-date volumes flat (down 0.3%). The SMMT noted that 80% of UK-built cars are exported and global economic uncertainties will impact demand for UK-built products.
Some 50% of UK car exports are bound for other EU markets and the region is currently struggling to recover from recession, with car sales edging up slowly and still way off previous peaks.
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However, the SMMT also said the outlook for UK car manufacturing is still positive with all-time record production levels expected within the next few years.
“The UK’s car manufacturing industry is still in a strong position in spite of the growing uncertainty surrounding the global economy,” said Mike Hawes, SMMT Chief Executive. “Billions of pounds have been invested into UK facilities in the past two years, with several new models starting production this year and more in the pipeline. There is still demand for UK-built products given their reputation for quality, design and engineering excellence.”
John Leech, KPMG’s UK Head of Automotive, said the October fall was surprising and that he did not expect the downward trend to continue. “The surprising fall in UK car production in October was due to weakening export demand and a higher amount of lost production days arising from supplier issues,” he said. “I do not expect this downward trend to continue as planned model launches should see UK production rising towards 2 million in 2017.”
| Car manufacturing | Oct 13 | Oct 14 | % Change | YTD-13 | YTD-14 | % Change |
| Total | 160898 | 150060 | -6.70% | 1286572 | 1282077 | -0.30% |
| Home | 30635 | 33895 | 10.60% | 271578 | 281788 | 3.80% |
| Export | 130263 | 116165 | -10.80% | 1014994 | 1000289 | -1.40% |
| % export | 81.00% | 77.40% | 78.90% | 78.00% |
Source: SMMT
