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January Fall In Car Production In The UK

March 4, 2020 by Logan Biggs

The motor trade industry must be used to hearing disappointing news so it will probably not come as a surprise to read that car production in the UK saw a drop in January 2020 according to figures published by the Society of Motor Manufacturers and Traders (SMMT). This will also cause some concern amongst motor traders involved in the sale of new cars.

Unfortunately, the number of new cars built in the UK in January 2020 amounted to 118,314 whereas in January 2019 the figure was 120,890. That is a fall of 2.1%. The number of new cars manufactured for the home market in January of this year amounted to 20,444 compared to 26,864 in January 2019 – a fall of 23.9%. The number of new cars built for export in January 2020 totaled 97,870 compared to 94,026 for January 2019 – a rise of 4.1%.

A couple of interesting statistics relating to the number of new cars built is that the UK has seen the volume of new cars manufactured drop for five consecutive months and the number of new cars produced here in the UK has dropped during nineteen of the last twenty months. These figures are quite worrying and let us hope that we see an improvement in the coming months.

Readers will also be disappointed to hear that the number of engines built here in the UK has fallen by 1.7% when comparing January 2020, when 238,193 new engines were manufactured, with 242,342 in January 2019. The number of new engines built for the home market in January 2020 was 97,775 whereas in January 2019 the figure was 89.901 – a rise of 8.8%. The volume of new engines manufactured for export in January 2020 was 140,418 compared to 152,441 in January last year – a reduction of 7.9%. It is to be hoped that we see an improvement in the coming months and beyond.

The performance of the car production and engine manufacturing sectors here in the UK has implications for other parts of the motor trade industry including the building and supply of engine parts. One of the implications a drop in the number of cars and engines built can have is a reduction in the number of people being employed here in the UK. This in turn potentially leads to the UK economy as a whole being affected in a negative way. We will continue to keep our readers up to date with future figures on a regular basis.


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