The Society of Motor Manufacturers and Traders (SMMT) has released data that has shown car production in the UK fell by nearly 20% in November. This is in comparison to the same time in 2017.
The industry’s trade body commented that the weak demand in the UK and abroad is to blame for the dramatic decrease in the need for UK manufactured cars. There were also significant changes in regulations, several new car models, and technology was introduced that could have contributed to such poor figures.
Falling Car Exports
Figures from trade bodies show that car exports had declined by 23% in November. This is a trend that has continued now for five consecutive months.
In addition, new models have had to be tested under strict new emission standards. This has had a detrimental impact on UK car production. Two models were significantly impacted by the new regulations as their production was put on hold while the makers awaited for an update to engines and transmissions.
The SMMT has not released which two models were affected.
Concern has also been highlighted that output for the new Toyota Corolla has not yet reached its peak. The plant manufacturing these cars is the Burnaston plant located in Derby.
Those in the trade body are also concerned by the current Brexit talks. A no-deal Brexit could cost thousands their jobs. In 2017, the UK exported more than 1.3 million cars and 54% arrived in the EU.
Not All Bad News For Manufacturing?
Luckily, there’s some good news for the manufacturing industry. Economists had expected the UK manufacturing sector to slow down to 52.5 in December. Yet the sector was able to improve results, showing more growth with a score of 54.2. This was a growth of 1.1 from figures recorded in November.
This good news has partly come about because UK manufacturing has been stockpiling supplies for the eventual withdrawal of the UK from the EU. This is set to take place on the 19th March 2019.
Other aspects that had improved the performance of the manufacturing sector was the influx of new business. Though this could have also been driven by preparations for the upcoming Brexit.