Car production on the rise during October

Car production on the rise during October

International exports drives increase in British car production, although vehicles going to British customers fell again.

The Society of Motor Manufacturing and Traders announced that British car production rose 3.5 per cent in October, compared with the same time last year.

157,056 units rolled off the production line last month – an increase over October 2016’s 151,559 – thanks to greater product interest from the international markets.

Car production 2017 production line vehicle building
Credit: PA Images

Exports increased by five per cent too, meaning an export rate of vehicles produced in the UK of 82.1 per cent – the highest proportion this year.

However, with the confusion over diesel vehicles and less confidence in the market, cars built for British customers fell by 2.9 per cent compared to last year – making it nine months of decline. Production for British customers is down 6.8 per cent in the year-to-October – roughly 22,000 cars – showing the lack of trust in the current car market.

SMMT chief executive Mike Hawes said: “It's encouraging to see positive growth in exports this month and a slight increase in overall output.

SMMT Mike Hawes chief executive SMMT
SMMT Chief Executive Mike Hayes - Credit: PA Images

“Production for British consumers, however, has continued to fall as domestic demand for new cars decreased for the ninth month this year amidst continued uncertainty over both Brexit and the government's air quality plans.”

Hawes added: “It's important that confidence is restored to the new car market, as sales of the latest cleaner, greener cars not only address air quality concerns but speed up activity on factory lines across the UK.

“The industry needs stability and a clear roadmap for Brexit if we are to encourage investment and arrest the decline in both the market and business confidence."

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