Brexit uncertainty drives car manufacturing down nearly 10 per cent, SMMT warns

Car manufacturing fell by 9.8 per cent in October as global market turbulence and Brexit uncertainty continue to hit the industry.

Figures from the Society of Motor Manufacturers and Traders (SMMT) out today show 15,255 fewer cars year-on-year came off production lines last month, marking the fifth consecutive month of decline.

The influential trade body said the automotive industry, which accounts for £82bn turnover and 12.8 per cent of the country’s export of goods, was suffering significantly from “business and consumer uncertainty”.

Production for the UK market fell 12.1 per cent in October, with 24,246 cars heading to showrooms on home soil, while overseas demand was down 9.3 per cent.

But exports continued to make up the lion’s share of output, taking 82.7 per cent of all cars produced. Year-to-date output remained down, falling 6.9 per cent, with 1.3m cars produced in the first 10 months on 2018.

Mike Hawes, SMMT chief executive, said: “The fifth consecutive month of decline for UK car manufacturing is undoubtedly concerning and, while a number of factors have been at play, there is no doubt that business and consumer uncertainty is having a significant impact.

“With eight in 10 British-built cars destined for overseas markets, the majority to the EU, the sector’s dependence on exports cannot be downplayed.

“Europe is our largest trading partner and securing the right Brexit agreement which allows free and frictionless trade is vital for the future health of our industry.”

Last night the SMMT issued a plea to MPs to back Theresa May’s deal, after a survey published at its 102nd annual dinner on Tuesday night indicated that three quarters of car manufacturers feared a no-deal Brexit would threaten their long-term viability.