SMMT: New car demand in the UK fell more than a quarter last month

Car manufacturing in the UK slid last month as demand from domestic buyers tumbled, new data has shown.

The Society for Motor Manufacturers and Traders (SMMT) said 161,490 cars rolled off UK production lines in November, 4.6 per cent down on the same month last year.

The fall was driven by a 28.1 per cent drop in demand from British buyers, although exports rose 1.3 per cent. In total, 85 per cent of vehicles made in the UK were sold abroad, compared with 80.1 per cent in November 2016.

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In the year so far, UK factories have made more than 1.5m cars, although production for the domestic market has fallen nine per cent.

In December the SMMT warned car sales in the UK had become a “major concern”, after the number of vehicles sold in the UK fell 11.2 per cent year-on-year in November.

Today Mike Hawes, the organisation’s chief executive, called for more clarity on UK trading after Brexit.

“Brexit uncertainty, coupled with confusion over diesel taxation and air quality plans, continues to impact domestic demand for new cars and, with it, production output,” he said.

“While it is good to see exports grow in November, this only reinforces how overseas demand remains the driving force for UK car manufacturing. Clarity on the nature of our future overseas trading relationships, including details on transition arrangements with the EU, is vital for future growth and success.”

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