UK car production plummets by 16.8 per cent in September

The number of cars built in the UK in September fell by 16.8 per cent compared to the same month last year, with the automotive industry facing ‘many competing challenges’.

The Society of Motor Manufacturers and Traders (SMMT) reported that 127,051 cars were built last month – 25,610 fewer than the 152,661 produced during September 2017.

Production for the home market fell by 19 per cent and production for overseas markets fell by 16.2 per cent with exports accounting for 80 per cent of units produced.

Overall output in the year to date has declined by 6.6 per cent, from 1,254,352 cars to 1,171,765.

The SMMT attributed the decline to several issues. Chief among these are the negotiations for the UK’s exit from the European Union, which are still ongoing and make no promises on future trading arrangements.

Manufacturers have held off on investment in the UK until a deal – or lack of – is confirmed, and companies such as Jaguar have moved some production overseas.

Changes to model line-ups were also blamed, with new emissions regulations requiring the streamlining of product ranges and in some cases cars’ total removal from sale until the new standards have been applied. Cars can no longer be sold unless they meet new ‘WLTP’ regulations, which came into force on September 1.

The government’s attitude towards diesel was also blamed, with manufacturers such as Jaguar and Land Rover seeing sales of their traditionally diesel-heavy line-ups plummet.

Mike Hawes, chief executive of the SMMT, said: “These figures highlight the many competing challenges facing UK Automotive. It has been a turbulent year and the industry needs stability, something which appears elusive given the lack of resolution to Brexit negotiations.

“The UK government has recognised the importance of a deal that maintains free and frictionless trade with the EU, but it is up to all sides to deliver this to safeguard the hundreds of thousands of jobs depending on the sector.

“Stability is also needed at home and a stronger UK new car market would go a long way to boosting manufacturing output.

“The Chancellor’s Budget next week is the perfect opportunity to stimulate the market, sending consumers and businesses the right signals to encourage the purchase of new cars, which would help bolster economic performance as well as deliver environmental goals.”