It has been found that UK car production declined last month.
Figures released by the Society of Motor Manufacturers and Traders (SMMT) have shown that demand has fallen by -13.3% year on year.
Altogether, 147,471 cars were built in British factories across the UK, as the domestic market continued to slow and demand fell to -17.7%.
Exports also declined and were down by -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.
Important Contributors to UK Economy
Britain’s vehicle and component manufacturers are important contributors to the UK economy.
They are responsible for 13.0% of all of the country’s export in goods. For every one pound generated by the industry, three pounds are delivered to the economy via adjacent sectors such as logistics, retail and finance.
SMMT calculations have put the total economic impact at £219 billion, which is 10% of UK GDP.
Double Digit Decline
“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. Maintaining free and frictionless trade is an absolute priority – it has been fundamental to our past success and is key to our future growth.” Mike Hawes, SMMT Chief Executive.