Car production shows dramatic fall in May

UK car production dropped in May as buyers remained cautious in the run-up to the General Election.

Production was down almost 10% last month at 136,119 (2016: 150,802). The UK market showed the largest fall, down 12.8% at 26,528 (2016: 30,431).

Exports, which have helped to bolster figures during the first half of the year, were fell, down 9% at 109,591 (2016: 120,371).

However, despite the fall in volumes, the actual number of cars exports rose slightly to 80.5% (2016: 79.8%).

Year-to-date volumes are down 1.2% at 729, 755 (2016: 738,516), with the volume of cars produced for the UK market down 8.1% at 153,199 (2016: 166,766). Exports for the first five months remain positive, up 0.8% to 576,556 (2016: 571750).

The Society of Motor Manufacturers and Traders (SMMT) said the figures struggled because of the strong performance in 2016, when output increased more than 26%, giving the highest May total in more than a decade.

The SMMT said that as car manufacturers prepared to ramp up production of new models, exports would continue to be the main driver of demand.

Mike Hawes, SMMT chief executive, said: “After a record start to the year, car production in the UK has slowed as production lines gear up for a range of new models. Global demand is strong and exports remain the driving force for British car production volumes in the UK.

“Maintaining our current open trade links with Europe, our biggest market, and further developing global markets is vital for this sector.”

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