UK car manufacturing has declined in November, falling by 4.6 per cent when compared with the same month last year.
Figures from industry body the Society of Motor Manufacturers and Traders (SMMT) revealed that a total of 161,490 cars rolled off production lines, largely driven by overseas demand, which increased by 1.3 per cent.
Exports accounted for 85 per cent of manufacturing output in November, at 137,214 units. This is the highest proportion reached so far this year.
Domestic demand, on the other hand, fell by 28.1 per cent to just 24,276 units – representing the largest decline in 2017.
Mike Hawes, SMMT chief executive, said: “Brexit uncertainty, coupled with confusion over diesel taxation and air quality plans, continues to impact domestic demand for new cars and, with it, production output.
“Whilst it is good to see exports grow in November, this only reinforces how overseas demand remains the driving force for UK car manufacturing.
“Clarity on the nature of our future overseas trading relationships, including details on transition arrangements with the EU, is vital for future growth and success.”
Avril Webster, head of sales and marketing at AA Cars, added: “Domestic demand for new cars is down for a tenth consecutive month. Such a sizeable drop-off is unprecedented and an indication that a lack of clarity over air quality plans and uncertainty around Brexit is weighing heavily on consumer appetite.
“It’s clear that consumers are crying out for clarity. Anyone who was holding out for such in the Budget will have been sorely disappointed.
“The Chancellor’s plans to increase the first-year VED rate on diesels that don’t meet the standards for next-generation clean diesels puts even more pressure on consumers and manufacturers in a year that has already dented the market.
“This confusion has been exacerbated by rising inflation and increasingly squeezed living costs, meaning consumers are most cautious about splashing out on big ticket items.”
News Soruce: https://uk.news.yahoo.com/uk-automotive-takes-another-hit-100807310.html
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