The Society of Motor Manufacturers and Traders (SMMT) has once again called for “political and economic clarity at home” after figures for July revealed a fall in car production.
Although the Chief Executive, Mike Hawes, said it’s difficult to make sweeping conclusions from monthly figures, there has still been a hefty decrease of 11% of car production in July, in comparison with the corresponding month of 2017.
According to the latest data, 135,954 cars were manufactured in July 2017; in July 2018, this figure fell to 121,051, which is a fall of more than one tenth.
It is the home market that has see the most pronounced drop. The 19,414 produced in July 2018 is 35% down from the year before.
Meanwhile, for exports, a total of 101,637 cars were manufactured in July 2018, which is a much smaller decrease of 4.2% from the year before, but a drop nevertheless.
Despite this, figures reveal that the share of exports in terms of car production have increased for the month of July.
It is a pattern that has been repeated in the year to date, which has seen the share of the export market go up from 78.7% to 81.3%.
Up to the end of July 2018, the number of cars produced was recorded as 955,453. This is 4.4% down from the end of July 2017 in the year to date figures.
Once again, the home market is the one to suffer the most, with a 16% drop; the fall in the export market was slight.
The SMMT has tempered the news of the monthly fall by pointing out that July 2017 was particularly strong; in any case, Mike Hawes, Chief Executive of the Society, said that the monthly market is volatile and the industry remains broadly on track to hit car production expectations.
Once again though, he reiterated the need for clarity to ensure future trading arrangements, in preparation for Brexit.
He said: “While the industry is undoubtedly feeling the effects of recent uncertainty in the domestic market, drawing long term conclusions from monthly snapshots requires a health warning.
“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.”