2020.09.2505:45:00UTC+00UK Car Production Declines Sharply In August: SMMT

UK car production declined sharply in August as ongoing coronavirus crisis stalled efforts to ramp up output, data from the Society of Motor Manufacturers and Traders, or SMMT, showed Friday.

Output decreased 44.6 percent on a yearly basis in August. Just 51,039 units rolled off factory lines as the decline in demand from overseas markets was compounded by a sharp decrease in output for British buyers.

The SMMT said the performance also reflects an unusually strong August in 2019, when some plants worked through the customary summer maintenance shutdown period, instead pausing in April to mitigate the then possible 'no deal' Brexit on March 31.

Production for domestic market plunged 58.3 percent annually and that for exports were down 41.1 percent.

So far this year UK, car production decreased 40.2 percent, representing a loss of 348,821 units.

"The UK industry is fundamentally strong and agile, and the measures announced yesterday by the Chancellor are welcome and essential, although we await more details of how they will work for all businesses and crucially large manufacturers," Mike Hawes, SMMT chief executive?said.

The lobby observed that crisis of a second wave of coronavirus comes with the prospect of a 'no-deal' Brexit now mere months away and with the UK on course to produce just below 885,000 cars this year, down 34 percent on 2019.