Car production falls but sector ‘optimistic about return to growth’

Car production fell last month, continuing a trend seen across the year, new figures show.

The number of cars built in UK factories was 8.4 per cent lower in August compared to the same month last year.

The Society of Motor Manufacturers and Traders (SMMT) said 41,271 new cars left production lines, 3,781 fewer than last August.

The trade body said the decline continues this year’s trend as factories wind down production of key models and prepare for new, mainly electric models.

Battery electric, plug-in hybrid and hybrid production for the month fell by 25 per cent but the SMMT said the decline is expected to be reversed as new models come onstream.

Production for the domestic market fell by almost 20% while exports were down by 5.9%.

Mike Hawes, SMMT chief executive, said: “With the traditional summer shutdowns and factories prepping to switch to new models, August was always going to be a quieter month for output.

“The sector remains optimistic about a return to growth, however, with record levels of investment announced last year.

“Realising those investments and securing more depends on the UK industry maintaining its competitiveness so we look forward both to the Chancellor’s autumn budget and the Government’s proposed Industrial Strategy as critical opportunities to demonstrate that it backs auto.”