UK car production falls as Brexit pressures intensify

Published: 27 July 2017

 UK car production falls
 Down 14% in June 2017
 Demand falters blamed

Output from British car factories fell by 13.9% to 136,901 vehicles in June 2017, new figures out today show.

The Society of Motor Manufacturers and Traders (SMMT) reported the drop and said that faltering demand was finally catching up with a sector that has enjoyed a long boom.

The fall in demand appears to be accelerating; last month's drop was significantly higher than the annual rate of decline. Year-to-date, UK car production is down 2.9%.

UK car production: a boom in recent years

This is no sudden collapse, yet. Although there have now been three consecutive months of output reductions, UK car production remains at its second highest level in 12 years.

UK car production, June 2011 - June 2017

The graph issued by the SMMT shows just how much UK output has soared in the past six years. It had predicted that British factories would be building 2 million cars a year by the end of the decade.

That target now looks unlikely, as faltering demand and uncertainties over Brexit continue to cast a shadow over the economy and consumer demand, especially domestically.

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By Tim Pollard

Editorial director of CAR's digital publishing arm. Motoring news magnet