Car production in the UK rose in October driven by strong exports. The small gain of 3.5% reversed the recent declining trend, but the SMMT also said that forecasts for overall annual production this year are being revised down.
Data from the SMMT shows UK car manufacturing up 3.5% in October with 157,056 cars rolling off production lines. Although production for the domestic market – now declining – was down 2.9%, exports were up 5%.
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So far this year, overall output is down by 1.6% at 1.44m units. Exports are marginally down on the same period of last year at 1.118m units.
Some 82.1% of all UK-built cars were shipped abroad in October – the highest proportion this year – with the bulk going to Europe.
The SMMT said that 28,178 cars were produced for domestic buyers in October and blamed the near 3% fall on lower business and consumer confidence, combined with confusion over government policies towards diesel. This, the SMMT said, continues to dent orders. Year-to-date figures show production for the home market decreased by -6.8% or almost 22,000 units.
The latest independent production forecast is also published today, which revises the expected UK output for 2017 down to 1.73m, lower than previous SMMT expectations of around 1.8m. The revision is due in part to the decline in domestic demand, but also because of lower than expected production levels of certain models as some approach the end of their lifecycles, the SMMT said.
Mike Hawes, SMMT Chief Executive, said: “It’s encouraging to see positive growth in exports this month and a slight increase in overall output. Production for British consumers, however, has continued to fall as domestic demand for new cars decreased for the ninth month this year amidst continued uncertainty over both Brexit and the government’s air quality plans. It’s important that confidence is restored to the new car market, as sales of the latest cleaner, greener cars not only address air quality concerns but speed up activity on factory lines across the UK.
“The latest independent UK forecast report is worrying news for the sector, predicting annual output which is, at best, static compared with last year. The industry needs stability and a clear roadmap for Brexit if we are to encourage investment and arrest the decline in both the market and business confidence.”
