5 December 2017
Latest figures released by SMMT at the end of November show car production increased last month as rising exports made up for a fall in demand in the UK.
Just over 157,000 cars were produced in October 2017 which is 3.5% more than the same time last year. Exports increased by 5% with more than 1.1m cars being built for overseas markets this year, while this compares to a 2.9% fall in domestic demand in the UK.
The UK car market has now fallen in production units for nine months in a row with 28,178 vehicles produced in October for the UK markets.
The fall has been blamed on lower business and consumer confidence as well as confusion over government policies towards diesel vehicles. The Chancellor continued a crackdown on diesel in November’s Budget, announcing that taxes on new diesel cars will rise next year and company car drivers will also have to pay more to drive a diesel from April 2018. However, despite the tax rises, the Budget was not as severe as many feared and fuel duty on petrol and diesel was frozen until at least April 2019.
The expected amount of vehicles to be built this year has been revised from 1.8m, reducing to 1.73m and more than four out of five UK cars were shipped abroad last month, the highest proportion this year.
The SMMT were quoted as saying 'while it’s encouraging to see positive growth in exports this month and a slight increase in overall output, it is important that confidence is restored to the new car market as sales of the latest cleaner green cars not only address air quality concerns but speed up activity on production lines in the UK. The Industry needs stability and a clear plan for Brexit if we are to encourage investment and stop the decline in the market.'
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