UK car industry had lowest production level since 1995

LONDON: Britain’s car manufacturing industry has recorded low levels of production not seen since the 1990s as a result of the coronavirus pandemic, according to a report from the Society of Motor Manufacturers and Traders (SMMT) released on Thursday.

For the first nine months of the year overall, production was just under 36 per cent below the level of the previous year, at some 632,000 vehicles. But this September marked the weakest September for production in 25 years, with manufacturing output down to 114,732 units.

Exports fell by almost 10 per cent. Roughly 75 per cent of cars produced in Britain are exported and increased demand in the domestic market could not compensate for the downturn. Exports to the US slumped by 30 per cent in September, while 3 per cent fewer British cars were exported to European Union countries than in the same period last year.

The industry welcomed renewed Brexit negotiations, as Britain seeks new trade deals after formally exiting the European Union on January 31. However, SMMT chief Mike Hawes said that if tariffs came into force from a so-called “no-deal Brexit,” it would place an extreme burden on exports and significantly reduce the competitiveness of British cars. “With production already strained, the additional blow of ‘no deal’ would be devastating for the sector, its workers and their families,” Hawes warned. — dpa