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Summary
- British car production fell 1.4 per cent in November to 106,243 vehicles
- The production on YTD basis is now down 31 per cent with 380,809 fewer cars manufactured in 2020
- SMMT CEO Mike Hawes said that the industry might face a nightmare New Year with no Brexit deal
The automotive industry of the UK has already been facing a lot of difficulties due to the frequent lockdowns and restrictions. Though the companies have been providing click and collect services as the dealerships are closed, the experience has not matched the showroom sales.
The tier 4 lockdown that was announced on 20 December has come at the worst possible time posing a threat to businesses that are already facing hurdles due to the Brexit transition period.
(Image source: ©Kalkine Group 2020)
UK car production
The Society of Motor Manufacturers and Traders (SMMT) released its report on Wednesday revealing the car production figures for the month of November.
(Data Source: SMMT, UK)
Comparison on YoY basis
The SMMT data shows that the monthly output of the automotive industry declined by 1.4 per cent in November when it produced just 106,243 units.
Despite the slump, the industry has shown a better performance in comparison than November 2019 and other months this year. In November 2019, the production was down as the factories had opted for a shutdown as a precautionary step in anticipation of a ‘no deal’ Brexit on 31 October.
This year, only 106,243 cars were manufactured, which is 1,501 units fewer than in the same month last year. The fall is driven by reduction in domestic orders, the tougher tier 3 restrictions in England, and subsequent economic and political turbulence.
Export volumes witnessed only 0.3 per cent rise. This segment was boosted by shipments to key markets in Asia, the EU, and the US. Around 85.3 per cent, i.e., more than 8 out of 10 cars built in November were for exports, which highlights the critical importance of free and fair trade.
Comparison on YTD
The total car production in the last 11 months is down 31.0 per cent compared with the same period in 2019, which represents a loss of 380,809 units, almost worth £10.5 billion.
If the automotive industry is forced to trade on the WTO terms if there is ‘no deal’ Brexit, the potential production losses would amount to £55.4 billion over the next five years.
