The Society of Motor Manufacturers and Traders, SMMT, has released a report that has shown the number of vehicles being produced in the UK has decreased again. This report published by SMMT shows that only 103,232 new vehicles were manufactured throughout Britain in August, which is a 5.3% year on year decline. This is the fourth month that the number of cars being manufactured in Britain has fallen, with a drop of 404/5 for domestic vehicle production, and 5.6% drop in overseas car sales.
The SMMT has recorded that the UK has produced 1,106,285 new vehicles throughout the course of 2017 so far. This is 1.95 lower that the amount of cars produced last year. The drop has mainly been caused by the slowing of domestic growth, which has recorded declines in seven of the first eight months of the year.
Despite the gloomy news, it is considered common in the industry to see fluctuations in the levels of cars being produced throughout the summer months. It is thought that the level of output varies during this period because of the holiday factory shutdowns. Despite this, the continuation of the longer term downward trend that has been seen in the car manufacturing sector this year is a larger concern for production across the UK. It is essential for the health of the manufacturing industry that the confidence in businesses is restored. Especially with the uncertainty in the market at the moment in regards to Brexit, consumer and business confidence is vital.
The UK is exporting to 160 different countries around the world, this means that the SMMT is now one of the most vocal anti-Brexit trade bodies in the UK. The looming figure of Brexit is having an impact of the car market and with other challenges such as household finances, concerns in regards to PCP and a potential car finance bubble it is thought that the market is slowing as more and more people decide to sit back and wait during the economic confusion.