Autos

UK Car Production Drops In February

 

The number of cars made in Britain fell in February as domestic demand slumped by “double digit figures”, industry figures suggest.

The Society of Motor Manufacturers and Traders (SMMT) said that 145,475 vehicles were built during the month – 4.4% fewer than a year previously.

It blamed a 17% fall in production for the UK market, where consumers are holding back on big ticket purchases.

Boss Mike Hawes said the figures were of “considerable concern”.

More than eight out of ten cars made in Britain are exported, with demand in this market dipping only slightly in February, according to the figures.

However, it was domestic demand that suffered, falling from 34,143 to 28,336 units – the seventh consecutive month of decline at home.

According to analysts, new car sales have been falling in the UK as Brexit-related uncertainty weighs on consumer spending decisions.

They also blame the weaker pound since the Brexit vote, which has made imported vehicles more expensive, and confusion over the future of diesel.

Last week, ratings agency Moody’s said it expected new car registrations to fall 5.5% in 2018, following a 5.7% drop in 2017.

—BBC

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