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Gloucestershire Business News

Exports are main driver of demand as car production falls

The number of cars being produced in May fell by nearly 10 per cent, an official report has revealed.

Production of cars in the UK dropped by 9.7 per cent, according to the Society of Motor Manufacturers and Traders (SMMT), in comparison to the same period the previous year when the output of cars increased by more than 26 per cent, making it the highest May total in over a decade.

Exports continue to be the main driver of demand as car manufacturers prepare to ramp up the production of new models.

Production for the overseas market fell by nine per cent in May, although 576,556 new cars have been shipped abroad since January, making it a 0.8 per cent increase year-on-year.

Almost 80 per cent of all cars made in Britain are exported, with more than half going to mainland Europe.

Production for the home market fell by 12.8 per cent in May and down by 8.1 per cent in the year-to-date, with 153,199 cars destined for UK showrooms.

Despite this, nearly 730,000 new cars have been made in Britain in the first five months of the year, following the record performance seen in the first quarter.

SMMT chief executive Mike Hawes said: "After a record start to the year, car production in the UK has slowed as production lines gear up for a range of new models.

"Global demand is strong and exports remain the driving force for British car production volumes in the UK.

"Maintaining our current open trade links with Europe, our biggest market, and further developing global markets is vital for this sector."

What do you think? Email mark@moosemarketingandpr.co.uk

The number of cars being produced in May has fallen nearly 10 per cent in comparison with the previous year for domestic and export markets the latest report shows.

Production of cars in the UK dropped 9.7 per cent, according to the Society of Motor Manufacturers and Traders (SMMT), in comparison to the same period the previous year when the output of cars increased more than 26 per cent making it the highest May total in over a decade.

Exports continue to be the main driver of demand as car manufacturers prepare to ramp up production of new models.

Production for the over-seas market fell nine per cent in May although 576,556 new cars have been shipped abroad since January making it a 0.8 per cent increase year-on-year.

Almost 80 per cent of all cars made in Britain are exported, with more than half going to Europe.

Production for the home market fell 12.8 per cent in May and down 8.1 per cent in the year-to-date, with 153,199 cars destined for UK showrooms.

Despite this, nearly 730,000 new cars have been made in Britain in the first five months of the year, following the record performance seen in the first quarter.

SMMT chief executive Mike Hawes said: "After a record start to the year, car production in the UK has slowed as production lines gear up for a range of new models.

"Global demand is strong and exports remain the driving force for British car production volumes in the UK.

"Maintaining our current open trade links with Europe, our biggest market, and further developing global markets is vital for this sector."

What do you think? Email mark@moosemarketingandpr.co.uk 

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