Falling UK demand puts brakes on car manufacturing output

UK car manufacturing output has fallen for the fifth month in 2017, driven by double-digit declines in domestic sales.

UK car output in September shrank 4.1% compared to the same month last year, according to figures released by the Society of Motor Manufacturers and Traders.

A total of 153,224 cars rolled off production lines last month, 6,500 fewer than a year ago, while in the first nine months of 2017 there has been 1.29m cars produced in Britain, down more than 28,000 or 2.2% from the first nine months of 2016.

Domestic demand in the month dropped 14.2% to 31,421 units, while production for export fell 1.1%.

“With UK car manufacturing falling for a fifth month this year, it’s clear that declining consumer and business confidence is affecting domestic demand and hence production volumes," said SMMT chief executive Mike Hawes.

"Uncertainty regarding the national air quality plans also didn’t help the domestic market for diesel cars, despite the fact that these new vehicles will face no extra charges or restrictions across the UK.

“Brexit is the greatest challenge of our times and yet we still don’t have any clarity on what our future relationship with our biggest trading partner will look like, nor detail of the transitional deal being sought. Leaving the EU with no deal would be the worst outcome for our sector so we urge government to deliver on its commitments and safeguard the competitiveness of the industry.”