Sharp fall in car production sparks concern
By David Wood | 27th April 2018
The UK motor industry has dipped deeper into decline with car production falling by 13.3% in March year on year.
According to figures released by the Society of Motor Manufacturers and Traders (SMMT). 147,471 cars were built in British factories as the domestic market continued to slow, with demand falling by 17.7%.
Exports also declined in March, down 11.9% due to fluctuations in demand in some global markets.
In addition, some manufacturers were impacted by the adverse March weather conditions which negatively affected production operations.
Mike Hawes, SMMT chief executive, said: "A double digit decline in car manufacturing for both home and overseas markets is of considerable concern.
"Following recent announcements on jobs cutbacks in the sector, it's vitally important that the industry and consumers receive greater certainty, both about future policies towards diesel and other low emission technologies, and our post-Brexit trading relationships and customs arrangements."
Overall output in the first quarter of 2018 fell 6.3%, with 440,426 cars leaving production lines in total this year.
Almost 80% of these were exported, and while demand from overseas customers fell 4.0% in the first quarter, this was dwarfed by the 14.1% decline in manufacturing for the UK market.
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