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Motor industry sales continue to drop for UK

5 July 2019

Recent findings announced by the Society of Motor Manufacturers and Traders (SMMT) show that vehicle manufacturing output dropped 15.5% in May 2019, confirming 12 successive months of decreasing output.

Last month, factories constructed 116,035 new models, down 21,239 from May 2018.

SMMT and manufacturers said a whole year of tumbling production was a ‘serious concern’, and warned that the industry will face severe difficulties.

The Society of Motor Manufacturers and Traders statistics demonstrate that the output decline means that UK manufacturing is now 21 percent behind in 2019.

Around 705,774 new cars were produced at the end of May last year, while the total output for 2019 is only 557,295 units.

SMMT indicated that manufacturing numbers had been influenced by producers moving their factory shutdowns to late March and early April in anticipation of disturbance created by the possibility of Brexit.

Figures also showed that national production units dropped last month by 25.9 percent year-on-year, while export manufacturing – which accounts for more than eight in ten cars constructed in the UK – also dropped by 12.6 percent.

A decline for 12 continuous months in UK car manufacturing is a severe problem and once again underlines the significance of quickly securing a Brexit agreement.

The continuing political upheaval of instability and uncertainty over our future foreign trade relations, particularly with Europe, does not help, and while the fundamentals of the industry stay solid, a powerful future is only feasible if we secure an agreement that can help us regain our reputation as an appealing place for automotive investment.

If you would like any help or advice in the automotive industry, please do not hesitate to contact our sector specialists.