UK car production has declined for the third consecutive month, according to statistics released by the Society of Motor Manufacturers and Traders (SMMT) which warns that Brexit is to blame for the drop and could cause a further drop.
While as many as 136,901 cars were built in the month of June 2017, that figure represents a 13.7 per cent reduction compared to the same month last year. In the year-to-date, taking the first six months of 2017 into account, total car production in Britain has reached 866,656, a decrease of 2.9 per cent compared to this point of time last year.
While Britain’s new car production hasn’t matched the highs of 2016 up until now, it is still at it second highest point for 12 years. At the moment, the main weakness facing the industry is production for “home” sales.
While 78.9 per cent of new cars produced in the UK so far this year have been built for exporting (the highest figure in five years), production for home sales has dropped by 9.5 per cent in the year-to-date to 182,830 units.
SMMT Chief Executive, Mike Hawes, said that “Brexit uncertainty is not helping investment and growth is stalling.”
Hawes added: “The government has been in "listening" mode but now it must put on the table the concrete plans that will assure the future competitiveness of the sector. Investors need certainty so, at the very least, the UK must seek an interim deal which maintains single market and customs union membership until we have in place the complex new agreement sought with the EU.”