UK car production rises 5% in April but Brexit gloom lingers for industry

Domestic demand suffers another double-digit fall

Year-to-date, overall output remains down, by 3.9 per cent, with a total of 568,378 cars leaving production lines in the first four months of 2018 (Shutterstock)

UK car production rose in April as several plants ramped up production to deliver a number of new key and updated models.

British factories built 127,952 vehicles in April as output grew 5.2 per cent on the same month last year, according to figures released by industry body the Society of Motor Manufacturers and Traders (SMMT).

The growth figure was flattered because the industry slumped to a double-digit decline in April 2017 when Easter bank holiday timing impacted output, the SMMT cautioned.

Manufacturing for home and overseas markets grew by 7.3 per cent and 4.7 per cent respectively, with 103,662 cars built for export in the month accounting for 81.0 per cent of total production.

However, year-to-date, overall output remains down, by 3.9 per cent, with a total of 568,378 cars leaving production lines in the first four months of 2018.

Four fifths of these were exported, as domestic demand fell 10.3 per cent against a less substantial 2.2 per cent decline in vehicles destined for global markets.

Mike Hawes, SMMT chief executive, said, “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.”