Industry Brexit fears grow as automotive sector slowdown continues

Data published this week (26^th April) by the SMMT (The Society of Motor Manufacturers and Traders) shows that 147, 471 cars rolled of UK production lines in March. This represents a 13.3 percent year on year decline, fuelled by a 17.7 percent decline in domestic demand and an 11.9 percent decline in demand from export markets.

The figures mark the latest, and steepest, decline in what has so far been a disappointing year for the sector. Overall output in the first quarter fell by 6.3 percent, with demand from overseas customers dropping by 4.0 percent and the UK market declining by 14.1 percent.

Commenting on the figures Mike Hawes, SMMT chief executive, said, “A double-digit decline in car manufacturing for both home and overseas markets is of considerable concern. Following recent announcements on jobs cutbacks in the sector, it’s vitally important that the industry and consumers receive greater certainty, both about future policies towards diesel and other low emission technologies, and our post-Brexit trading relationships and customs arrangements. Maintaining free and frictionless trade is an absolute priority – it has been fundamental to our past success and is key to our future growth.”