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(Alliance News) - British car manufacturing output declined 11% year-on-year in July to 108,239 units, data from the Society of Motor Manufacturers & Traders showed on Thursday.
According to the trade association, July marked the fourteenth consecutive month of decline after car manufacturing dropped by 20% in June. SMMT said ongoing weakness in major EU and Asian markets, along with some key model changes, affected July production.
Production for export fell 15% in July, although overseas demand remained the main driver of overall volumes, accounting for eight in ten cars built, data showed. Output for the domestic market rose by 10%, or just fewer than 2,000 units, following a steep 35% fall in July last year, when multiple factors, including preparation for WLTP affected output.
"Another month of decline for UK car manufacturing is a serious concern. The sector is overwhelmingly reliant on exports and the global headwinds are strong, with escalating trade tensions, softening demand and significant technological change," SMMT Chief Executive Mike Hawes said.
"With the UK market also weak, the importance of maintaining the UK's global competitiveness has never been more important so we need a Brexit deal – and quickly – to unlock investment and safeguard the long term future of a sector which has recently been such an international success story," Hawes added.
Year-to-date, 774,760 cars have been built in Britain, 180,864 fewer than in the comparative year ago period and representing a fall of 19%, according to SMMT data.