Massive drop in domestic demand sees UK car manufacturing decline in February
New data from the SMMT shows that total UK car manufacturing fell by more than four per cent last month, as production for the domestic market saw a double-digit percentage decline
The number of cars built in the United Kingdom fell in February, driven by the seventh consecutive month of declining demand from the home market.
New figures from industry body the Society of Motor Manufacturers and Traders (SMMT) show that 145,475 vehicles were built in the UK in February – down 4.4 per cent on the 152,232 cars made in the same month last year.
That was despite exports holding steady, with a decline of just 0.8 per cent from 118,089 to 117,139. The biggest impact on overall production was a double-digit percentage drop in production for the home market – the seventh month in a row that demand in the UK has been below the previous year’s figures. In February, 28,336 vehicles were built for the domestic market, compared with 34,143 last year – a fall of 17 per cent.
Mike Hawes, SMMT chief executive, said: “Another month of double-digit decline in production for the UK is of considerable concern, but we hope that the degree of certainty provided by last week’s Brexit transition agreement will help stimulate business and consumer confidence over the coming months.
“These figures also highlight the scale of our sector’s dependency on exports, so a final deal that keeps our frictionless trade links with our biggest market, the EU, after December 2020 is now a pressing priority.”
The year-to-date figures don’t make for much better reading, either. Production for the first two months of the year was down 2.3 per cent from 299,785 to 292,956 vehicles, with demand for export up 0.3 per cent from 235,615 to 236,391. However, domestic demand was down 11.9 per cent, from 64,170 to 56,565.
