SMMT figures show UK car production fell 11% in July

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Ramos/Getty

• British car production fell 11% year on year in July,
  with manufacturing for the domestic market collapsing by
  35%.
• The drop is due to model changes, seasonal adjustments
  and upcoming changes in emissions standards, the Society of
  Motor Manufacturers and Traders (SMMT) said on
  Tuesday.
• 955,500 cars have been built in the first seven months
  of the year, which is down 16% for the UK domestic
  market.
• “To ensure future growth, we need political and
  economic clarity at home, and the continuation of beneficial
  trading arrangements with the EU and other key markets,” said
  SMMT Chief Executive Mike Hawes.

British car manufacturing fell by 11% in July compared to the
same time last year, struck by model changes, seasonal
adjustments and upcoming changes in emissions standards, an
industry body said on Tuesday.

Production last month was at 121,051 units, with output for
domestic markets collapsing by 35% and car manufacturing for
exports falling by 4.2%, the Society of Motor Manufacturers and
Traders (SMMT) said.

“The bigger picture is complex and month-by-month fluctuations
are inevitable as manufacturers manage product cycles,
operational changes and the delicate balance of supply and demand
from market to market,” said SMMT Chief Executive Mike Hawes.

The SMMT added that figures from last July had also been a
particularly strong due to the launch of several new models.

Almost 955,500 cars have been built in the first seven months of
this year, which is down 16% for the UK market and 1.2% for
export markets. But July’s report is an improvement on June when
production fell 47%.

The British car industry is concerned about the possible impacts
of Brexit because of its heavy reliance on the European supply
chain and the EU’s status as Britain’s biggest car export market.

“To ensure future growth, we need political and economic clarity
at home, and the continuation of beneficial trading arrangements
with the EU and other key markets,” said Hawes.

The UK exports most of the cars it makes, but it is also a big
importer of foreign autos with about 86% of new vehicles coming
from foreign markets, and 69% of new cars coming from the EU.