UK car production down for third straight year
UK car production fell 14.2% in 2019, to 1,303,135 units, according to figures released by the Society of Motor Manufacturers and Traders (SMMT), with a 6.4% drop in December rounding off a third year of decline.
Output was affected by multiple factors, including weakened consumer and business confidence at home, slower demand in key overseas markets, a number of significant model production changes and a shift from diesel across Europe.
Factory shutdowns in the spring and autumn also had a marked effect.
Manufacturing for domestic car buyers fell 12.3%, to 247,138 units, while exports also took a hit, down 14.7%, although overseas orders continued to drive volumes, accounting for more than eight in 10 cars built and totalling over one million units. Although shipments to the EU27 fell, by 11.1%, the bloc remains the sector’s most important market with its share of exports rising by two percentage points to 54.8%.
Meanwhile, trade with the UK’s next largest markets, the US, China and Japan also fell, with exports down 9.8%, 26.4% and 17.7% respectively.
Meanwhile, production of alternatively fuelled cars rose, by 34.7% to 192,304 units, as global appetite for the UK’s electric, plug-in hybrid and hybrid offering continues to rise.
Mike Hawes, SMMT chief executive, said: “The fall of UK car manufacturing to its lowest level in almost a decade is of grave concern. Every country in the world wants a successful automotive sector as it is a driver of trade, productivity and jobs. Given the uncertainty the sector has experienced, it is essential we re-establish our global competitiveness and that starts with an ambitious free trade agreement with Europe, one that guarantees all automotive products can be bought and sold without tariffs or additional burdens.
“This will boost manufacturing, avoid costly price rises and maintain choice for UK consumers. Negotiations will be challenging but all sides stand to gain and this sector is up for it.”
Meanwhile, the latest independent production outlook downgrades expectations for 2020 to 1.27 million units, down from the 1.32 million forecast made in November
