Car production on slide amid fall in vehicle exports

A fall in car exports has led to fewer vehicles being produced, new figures have shown.

A total of 63,655 vehicles were built last month, down 11 per cent compared with July last year, according to the Society of Motor Manufacturers and Traders (SMMT).

Car production fell by 10.6 per cent, while commercial vehicle output declined by 34.4 per cent.

Exports dropped by almost 16 per cent to 47,377 vehicles, with earlier scheduling of routine summer maintenance shutdowns at some plants also affecting production, the SMMT said.

Exports to all major markets were down, including the EU (-15.2 per cent), the US (-17.7 per cent), Turkey (-18.5 per cent), China (-36.9 per cent) and Japan (-24.4 per cent).

However, production of fully electric and hybrid models recorded its first monthly increase of the year, rising 6.8 per cent to 25,678 units.

Electrified models accounted for more than four in 10 cars built in July, up from around three in 10 a year ago.

Mike Hawes, SMMT chief executive, said: “July’s figures underline the intense pressure under which UK vehicle manufacturers are currently operating.

“Although the negative performance is exacerbated by shutdowns and model changeovers, it is being compounded by weaker overseas demand and fierce global competition.

“The rise in electrified vehicle production is encouraging, but long-term success depends on making the UK a more competitive place to make and sell vehicles.”

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