UK car production drops amid diesel confusion

Car manufacturing in the UK fell in 2017, for the first time in eight years, according to the latest figures.

The data, released by the Society of Motor Manufacturers and Traders, reveals that 1.67m cars were made in the UK in 2017, a 3% drop on the previous year.

According to the SMMT, a sharp 9.8% fall in demand from domestic consumers was the culprit, as exports remained at historically high levels. It blamed uncertainty over Brexit, and mixed messages from the government around diesel vehicles.

SMMT chief executive Mike Hawes said ongoing uncertainty could affect exports too, more than half of which went to the European Union. “We urgently need clarity on the transitional arrangements for Brexit, arrangements which must retain all the current benefits or else around 10% of our exports could be threatened overnight,” he said.

Another 10% of car exports go to countries where the EU has an advantageous trade deal in place, said the SMMT, which called for these arrangements to remain in place throughout the two-year Brexit transition period.

“We compete in a global race to produce the best cars and must continue to attract investment to remain competitive. Whilst such investment is often cyclical, the evidence is that it is now stalling, so we need rapid progress on trade discussions to safeguard jobs and stimulate future growth,” said Hawes.