Car industry repeats plea for customs union as output falls again

UK car production fell again in March, and is down more than 13% on this time last year, according to figures from the Society of Motor Manufacturers and Traders.

The figures reveal that 147, 471 cars were built in British factories during last month, the eighth successive month of falling demand in the home market. Eight out of 10 cars built in the UK in the first quarter of 2018 were shipped overseas, but exports were also down 11.9% in March.

Mike Hawes, SMMT chief executive, said the double-digit decline was of “considerable concern”. “Following recent announcements on job cutbacks in the sector, it’s vitally important that the industry and consumers receive greater certainty, both about future policies towards diesel and other low-emission technologies, and our post-Brexit trading relationships and customs arrangements,” he said.

Hawes also reiterated the SMMT’s position on remaining in the customs union when the UK leaves the European Union, something the government recently ruled out. “Maintaining free and frictionless trade is an absolute priority – it has been fundamental to our past success and is key to our future growth,” he said.