Car production dips 5% in August on weak demand

UK car production fell by more than 5% in August as demand both at home and abroad declined.

Figures released by the Society of Motor Manufacturers and Traders (SMMT) show 103,232 vehicles left UK factories last month – a fall of -5.3%, a figure the trade body has said is of “concern” to the industry.

Production for the domestic market dropped 4.4% to 26,594 units, while output for overseas customers was down 5.6% to 76,638.

The percentage of cars produced for export also declined slightly at 74.2%, against 74.5% for the same month last year.

In total, 1,106,285 vehicles have been produced in the first eight months of the year, an overall decline of 1.9%.

Production for the home market has declined more than 6% in the year to date – 239,294 vehicles being produced, against 255,204 for the same period last year. The domestic market has been down in seven out of the eight months.

Export production is down 0.7%, although the number of cars produced for export in the eight-month period is actually ahead of last year at 78.4% against 77.4%.

Mike Hawes, SMMT chief executive, said: “It’s common to see fluctuations during the summer months, as output varies according to the timing and duration of holiday factory shutdowns. However, the continuation of the longer term downward trend in domestic demand is a concern for production across the UK so it is vital for the future health of this sector that the current uncertainty around Brexit is removed and consumer and business confidence restored.”