Motor Trade Insurance

Reduction In UK Car Manufacturing

July 31, 2019 by Logan Biggs

Those of you operating within the motor trade industry will be disappointed to read that car manufacturing here in the UK suffered a large drop in production on a year to date basis to June 2019. This is not good news for this important sector of the UK economy.

According to the Society of Motor Manufacturers and Traders (SMMT), in the 6 months to June 2019 there was a fall of 20.1% in the building of cars here in the UK when compared with the same period to June 2018. In the later period there were 834,573 new cars built whereas in the former period there were only 666,521 new cars constructed.

With regard to the number of cars built for the home market, there was a fall of 16.4% from 159,265 to 133,203. The number of cars manufactured for export fell from 675,308 to 533,318 โ€“ a huge drop of 21.0%.

Comparing the number of cars built in June 2019 with the same month in 2018, there was a drop from 128,799 in June last year to 109,226 in June of this year. That is a fall of 15.2%. Interestingly, there was actually a rise in the number of new cars built for the home market from 15,647 in June 2018 to 18,438 in June 2019 โ€“ an increase of 17.8%. However, there was a large fall in cars built for export from 113,152 in June 2018 to 90,788 in June 2019 โ€“ a drop of 19.8%. The number of new cars built that were exported to China dropped by 53.1%, to the USA by 12.9% and Japan by 10.5%.  

It is the 13th month in a row that there has been a fall in car manufacturing here in the UK. It will be interesting to see if there is a reversal of this trend in the coming months. We will continue to keep our readers up to date.

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