China slowdown drives production decline
Following a 72.3% fall in output destined for China, British car factories reported an 18.2% fall in production to 120,649 units in January, marking the eighth successive month of decline.
This is according to figures released by the Society of Motor Manufacturers and Traders (SMMT). Demand dropped at home and overseas but it was the latter that fell most, with exports down 21.4% to 93,781 units.
Further softening in key Asian and European markets drove much of the decline, with output for the China market down 72.3% and the EU27 20%, while model changes also played a significant part. Meanwhile, manufacturing for the domestic market fell by 4.8%.
Mike Hawes, SMMT chief executive, said, ‘Another month of decline is a serious concern. The industry faces myriad challenges, from falling demand in key markets, to escalating global trade tensions and the need to stay at the forefront of future technology.
‘But, the clear and present danger remains the threat of a ‘no deal’ Brexit, which is monopolising time and resources, undermining competitiveness. Every day a ‘no deal’ Brexit remains a possibility is another day automotive companies pay the price in additional and potentially pointless costs. ‘No deal’ must be taken off the table immediately and permanently.’
