Car production at UK factories slumped
last month as growing exports failed to offset the largest decline in
domestic demand seen this year, new industry figures have showed.
Some
161,490 new cars rolled off assembly lines at UK motor factories in
November, which is 7,757 fewer cars than last year, or a decline of 4.6
per cent.
The drop-off was triggered by
a lack of demand at home, where UK car manufacturing was down by a
whopping 28.1 per cent compared to the same month last year.
This is the largest decline of 2017 and
means that nearly 10,000 fewer cars were produced for UK buyers last
month compared to November 2016, the Society of Motor Manufacturers and
Traders said.
The
industry body blamed the sharp decline on confusion created by new
taxation on diesel cars as well as uncertainty and lower consumer
confidence created by the UK’s departure from the European Union.
‘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,’ said Mike Hawes, the chief executive of
SMMT.
However, exports continued to grow last
month, with 137,214 new cars rolling off production lines destined to
overseas buyers, an increase of 1.3 per cent on the same month last
year.
Nearly eight of out of 10 cars
built in the UK are now destined for one of 160 global markets, the SMMT
said, or about 1.25million cars produced for overseas out of a total of
more 1.5million cars made on British shores in the year to date.
While
export volumes remain stable, production for the home market is down
nine per cent, resulting in overall output falling two per cent since
January.
Labels: Automobile