Car Production in the UK Improves by 5% in April but Gloom of Brexit Lingers for Car Industry

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Car production in the United Kingdom rose in April as various plants ramped up their production to deliver a number of new significant and updated models.

According to figures that were released by the industry body the Society of Motor Manufacturers and Traders (SMMT), factories in the United Kingodm built 127,952 vehicles last April as the output grew by 5.2 percent on the same month during the previous year.

the SMMT warned that the figure of growth was flattered since the industry dropped to a double-digit plunge in April 2017 when the timing of the Easter bank holiday affected the output.

Manufacturing for the overseas and home markets improved by 4.7 percent and 7.3 percent respectively, with 103,662 cars built for export during the month accounting for 81.0 percent of the total production.

However, year-to-date, overall output remains to be low, by 3.9 percent, with a total of 568,378 cars leaving production lines during the first four months of this year.

Four fifths of the number were exported, as the domestic demand dropped by 10.3 percent against a less substantial decline of  2.2 percent in vehicles that were destined for global markets.

The chief executive of SMMT, Mike Hawes, stated, “While April’s growth isn’t altogether surprising given the significant decline in output this time last year, it is good to see earlier planned investment into new models delivering results.

“However, given such investment was made on the basis of the free and frictionless trade afforded by our EU membership, the ability of UK plants to attract the next wave of new models and drive future growth depends upon maintaining these competitive conditions after Brexit.

“That’s why it is critical that government acts to safeguard our participation in the EU customs union and single market.”