Uk car manufacturing grew 3.5% to 157,056 units in October, in the face of a continued decline in domestic market demand.
The demand of the British people to customers with a decline of 2.9% to 28,178 units through four weeks, but a 5% increase in exports helped to ensure the overall growth. In total, 157,056 cars came out of uk production lines. For the year-to-date, this is a 6.8% decrease, which amounts to approximately 22,000 cars.
The society of Motor Manufacturer and Traders chief Mike Hawes labeled economic uncertainty about Brexit and the government’s air quality plans as the key cause of the fall in uk demand.
“It is important that confidence is restored to the new car market, as sales of the latest more clean, more green cars, not only of the direction of air quality concern, but the speed of activity in the factory lines all over the united kingdom,” he said.
For the year to date, the united kingdom of the demand is by 6.8%, which is equivalent to about 22,000 cars. The foreign demand has had a better performance, with 1.1 million vehicles, after having been exported until 2017, although this is still 1.6% less than in the same period last year.
The results have caused the SMMT to lower its forecast for britain’s 2017 exit from 1.8 million to 1.73 million euros. Along with the fall in domestic demand, the SMMT, said a decrease in the output of some of the models that are coming to the end of their life cycles have contributed to the decrease of the prediction.
“The latest independent uk report of prognosis is worrying news for the sector, the prediction of the annual production is, at best, static in comparison with the last year,” said Hawes. “The industry needs stability and a clear roadmap for Brexit, if we want to encourage investment and to arrest the decline in the market and business confidence.”
The uk Autumn Budget was announced yesterday with a new rise in taxes for diesel vehicles, which do not comply with the next generation of Real Driving Emissions step 2 rules, that it does not become a legal requirement until the year 2020. The change is expected to push the diesel vehicle demand below, with sales already have fallen by 29.9% in October.
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