UK car production fell in April on slowing demand

DIA Insurance ADI News

The production of cars in the UK fell by almost a fifth in April compared to the same month of 2016, with the timing of Easter blamed for the drop.
Figures form the Society of Motor Manufacturers and Traders (SMMT) showed that around 122,000 cars were built over the course of the month, compared to 149,000 during April last year.
Compared to the same time last year, output fell by 18.2 per cent this April. April wasn’t just a bad month for vehicle production, with registrations down by nearly 20 per cent for the month, too.
Over the first four months of the year, growth in British car production ground to a halt, the figures also showed.
Between January and April some 593,796 cars were made, just 1 per cent higher than a year ago, and substantially weaker than the 10.8 per cent growth reported in the first four months of 2016.
Mike Hawes, the chief executive of the SMMT, said that despite the poor performance last month the UK car industry is doing well, with almost 600,000 new cars built so far this year.
This helped to offset a 7% decline in demand from the home market.
“Overall, British car manufacturing remains in good health with the production outlook still very positive and significant new models due to go into UK production shortly,” he said.
However, Mr Hawes did extend a warning that the future of the sector depends on the current trade and customs deals the UK currently enjoys with Europe and elsewhere – trade deals which could be at risk thanks to Brexit.
He said: “To guarantee future growth and investment into our industry and its vital supply chain, however, we need the next government to safeguard the conditions that have made us globally competitive, keeping us open and trading and delivering an ambitious industrial strategy for our sector.”

Source: ADI News

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