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31.07.201806:11:00UTC+00UK Car Production Falls On Domestic Demand: SMMT

UK car production declined in June due to a sharp contraction in domestic demand, the Society of Motor Manufacturers and Traders said Tuesday.

Car production decreased 5.5 percent year-on-year to 128,799 units in June. While exports grew 6 percent in June, this could not offset a 47.2 percent plunge in production for domestic market. Mike Hawes, SMMT chief executive, said, "June's results demonstrate the risks of judging automotive performance one month in isolation, with numerous and varied factors creating a perfect storm for home market output."

"Looking at the longer-term picture, the sector is performing as expected in the context of market conditions at home and abroad," Hawes added.

Production for export has continued to drive volumes throughout 2018, with overseas orders down by a marginal 0.8 percent in the first six months.

In the year to date, 675,187 cars were built for global markets, helping to mitigate disappointing domestic demand, with overall output down by just 3.3 percent to 834,402 units, the SMMT said.



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