The UK car manufacturing industry is experiencing turbulent times and latest published figures reveal that the interest for the domestic market has dropped sharply.
While the export market remains buoyant, 80 per cent of cars made in Britain heading for high-demand areas such as Asia and Europe, the truth is that overall production is down and output for the domestic market dropped by 23.9 per cent in January.
Concerns over Brexit and uncertainty on the future of combustion engines have led to the slump, and the supply chain issues caused by coronavirus will not help, but the facts remain that the number of cars manufactured in the UK has fallen in 19 out of the last 20 months.
The figures have been published by the Society of Motor Manufacturers and Traders, and the organisation’s chief executive has called on the government to agree a favourable Brexit deal to ensure the future of the car industry in Britain remains strong.
“Exports are the bedrock for UK car manufacturing so a rise in January exports is welcome following recent declining demand in overseas markets,” said the SMMT’s Mike Hawes.
“These figures, however, still give great cause for concern, with another month of falling car production driven by a lack of confidence and corresponding weak demand in the UK.
“The upcoming Budget is an opportunity for the government to provide supportive measures to stimulate the market, but the biggest boost would be the agreement of an ambitious free trade deal with Europe.
“This would end the ongoing uncertainty and help the UK to recover its hard-won reputation as a great place for automotive investment.”