14th month of decline for the UK automotive industry in July

British car manufacturing output dropped 10.6% in July year-on-year, marking the 14^th successive month of decline for the industry.

This is according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), which noted the ongoing weakness in major EU and Asian markets coupled with some key model changes affected performance this month.

Production for export fell 14.6% in the month, although overseas demand remained the main driver of overall volumes, accounting for eight in 10 cars built. Meanwhile, output for the domestic market rose by 10.2%, following a steep -35.1% fall in July last year, when multiple factors including preparation for WLTP (world harmonised light-duty vehicles test procedure) affected output.

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In the year-to-date, some 774,760 cars have been made in Britain, 180,864 fewer than in the same timeframe last year (representing a fall of 18.9%.)

With exports accounting for the vast majority of orders, their decline is primarily responsible for the overall fall in output with overseas shipments down 20.2% since January, while year-on-year production for the UK is down 13.5%.

"Another month of decline for UK car manufacturing is a serious concern," said Mike Hawes, SMMT chief executive. "The sector is overwhelmingly reliant on exports and the global headwinds are strong, with escalating trade tensions, softening demand and significant technological change."

He added: "With the UK market also weak, the importance of maintaining the UK’s global competitiveness has never been more important so we need a Brexit deal – and quickly – to unlock investment and safeguard the long term future of a sector which has recently been such an international success story.”

SMMT www.smmt.co.uk