A perfect storm of factors has led to the UK’s motor manufacturing levels declining for the third month in a row, whilst the threat of a hard Brexit continues to linger.

The industry saw a 12.9% decline in August, compared to the same month in 2017, the total figure of cars produced being 89,254 compared to 102,438 last year. Whilst it is the third month in a row of a decline, the most worrying figure is the overall annual output, which has dropped by 5.2% meaning that 57,000 fewer cars have been produced than last year. The decline for car registrations is at 4.2%.

Whilst a drop in demand for UK-produced cars has contributed significantly to the decline, the Society of Motor Manufacturers and Traders, Chief Executive, Mike Hawes, points to a number of factors.

“The quieter summer months are often subject to fluctuations due to the variable timing and duration of annual maintenance and re-tooling shutdowns. This instability was exacerbated in August, with the industry racing to recertify entire model ranges to meet tougher [emissions] testing standards in force on 1 September.

“With exports, the majority to the EU, continuing to drive demand, it underscores the importance of a Brexit agreement to safeguard this trade; for our sector, ‘no deal’ is not an option.”

Both Mini and Jaguar Land Rover have promised a Brexit related shutdown of their factories, and with the industry already experiencing its lowest year-to-date output since the vote to leave the EU took place, there is likely to be more stormy waters ahead for the motor trade.

Sell or part ex your car today