UK: car production to remain level with last year’s figures due to lower exports image

According to the latest forecast coming from an industry association, British automotive production is expected to essentially flatten in 2014 after output declined last month because of continued low exports on weaker demand.

According to the Society of Motor Manufacturers and Traders (SMMT), year-on-year overall production was down 0.2% in November to 137, 347 cars. That’s essentially due to the exports dropping 6% – even though local demand jumped by almost a third. The British-built models are exported on a four out of five ratio. Last month’s slight dip was also the fourth straight month of lower production levels, and that has prompted British car production to be 0.3% lower than 2013’s equivalent figures after eleven months. “Model changes and economic uncertainty in export markets have flattened UK car production,” commented SMMT Chief Executive Mike Hawes.

The downward trend has prompted the industry body to predict full-year production would not match a previous forecast of 1.59 million vehicles, most likely falling in line with last year’s 1.5 million cars production level. On the other hand, the association still thinks the growth would restart next year, and their forecasted level remains on track to achieve an all-time high of over 2 million by 2017, finally surpassing a record that was established back in 1972.

Via Reuters