Although more than 147,000 cars rolled off UK production lines in March, this was down 13.3% on the same month in 2017 and exports also fell by 11.9%.
Highlighting the importance of the automotive industry to Britain’s economy and jobs, the Society of Motor Manufacturers and Traders (SMMT) said that a double-digit decline in car manufacturing for both home and overseas markets was of considerable concern.
Overall output in the first quarter (Q1) of 2018 fell by 6.3%, with 440,426 cars leaving production lines in total this year. Almost 80% of these were exported although demand from overseas customers fell by 4.0% in the quarter.
SMMT Chief Executive Mike Hawes said: “Following recent announcements on jobs cutbacks in the sector, it’s vitally important that the industry and consumers receive greater certainty, both about future policies towards diesel and other low emission technologies, and our post-Brexit trading relationships and customs arrangements.”
He described free and frictionless trade as an absolute priority for the industry and pointed out that Britain’s vehicle and component manufacturers are important contributors to the UK economy being responsible for 13.0% of all the country’s export in goods.
For every £1 generated by the industry, Mr Hawes explained, £3 are delivered to the economy via adjacent sectors such as logistics, retail and finance, with SMMT calculations putting the total economic impact at £219 billion – 10% of UK gross domestic product.
