UK car manufacturing falls for ninth monthChristian Fernsby ▼ | March 28, 2019
UK car production for home and export markets both declined sharply last month, sparking fears of greater challenges for the industry if no-deal Brexit were to occur.
Britain Production for home market fell 11.0% year-on-year
Production for home market fell 11.0% year-on-year, the ninth consecutive month of declines, while exports were also down 16.4% as key Asian and European markets experience declines.
For the two months of 2019, overall output has decreased 16.8% with home demand down 8.0% and the majority of the decline came from the fall in manufacturing for export, down by 18.9%.
Weakening demand in key markets continued to affect output, with exports to China down more than half (-55.6%) and cars destined for the US down 2.8%. Meanwhile, production for the EU - the UK's biggest customer - declined by 14.9%.
The SMMT said that overseas demand still is the main driver of output, accounting for nearly eight in 10 cars produced and most destined for the EU. It calls for the assurance that the bloc will remain the UK's main buyer by securing a free and frictionless trading relationship.
This could be harmed by the possibility of no-deal Brexit, which would harm productivity and competitiveness. ■