A drastic multi-fold fall witnessed in Britain’s car production between the issue of tumbling diesel prices and export-based impact of Brexit. In the previous month, SMMT (the Society of Motor Manufacturers and Traders) and traders were forced to reiterate its decision for EU customs union to continue membership.
SMMT reported that the total numbers of car manufactured in the factories of UK dropped by 13%, compared to last figures that were 141, 471 units in March.
Production for the domestic market fell by 17.7% in the previous month, the export-based production figures came down to 11.9%. Moreover, 8 out of 10 cars that are manufactured in the UK include some leading car makers such as BMW and Nissan are exported.
Bad weather had severely impacted some companies. Freezing temperatures restrained the production operation as employees were unable to reach the work, while supply chain was seriously impacted.
In the Q1 of this year, production figures fell by 6.3% in contrast with the same period of last year with 440,426 cars produced. Amid January and March, the demand ratio of overseas customers fell by 4% that was reported as 14.1% drop in production for the overall UK market.
SMMT’s chief executive, Mike Hawes, “Decline in car production figures in double-digit from both domestic and a global market is a matter of concern.”
“After fresh job cuts announcement in the automobile sector it’s critically vital that the consumers and industry obtain superior assurance, about both low emission technologies and future policies towards diesel and our post-Brexit trading relationships & customs provision, “ he added.
Reiterating the demand for car industry’s access to the customs union, Hawes said, “Maintaining frictionless and free trade is an unconditional preference. It has been essential to our precedent accomplishments and is the solution to our potential growth.”