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Decline in car output rate smallest this year

UK car production fell by 6.7% in October amounting to 106,400 cars. Compared with a year earlier this represents the smallest annual decline of the year, figures just released by SMMT have shown.

The continuing impact of the government’s scrappage scheme and a recovery in global markets is helping to drive production, the SMMT said. But it predicted “another difficult year” ahead for the car industry.

So far this year, 801,169 cars have been produced in the UK, a fall of 38.1% on the same period last year.

The decline in commercial vehicle production was much more dramatic, with year-on-year figures showing a fall of 39.5%. Production for the first nine months of this year is now down 60%

From SMMT:
Pace of decline in car output slowing, October’s shortfall was smallest of the year.
Commercial vehicle output continues to decline sharply.
SMMT has encouraged government to boost business confidence through its pre-budget report.

“The rate of decline in UK car production continued to fall in October, against a weak 2008. The scrappage scheme and early signs of recovery in global markets offer some encouragement to UK vehicle producers, but 2010 is expected to be another difficult year for the industry,” said Paul Everitt, SMMT chief executive. “SMMT has asked the chancellor to use the pre-budget report to help sustain and strengthen recovery. Building business and consumer confidence will be key factors during the first half of 2010.”

Download SMMT report here…

Nov 20, 2009MTI
  • Car manufacturing output falls by 4.9% in May
  • UK car production down 16.1 percent but smallest decline for a year
  • Car output falls 31.5% in August
  • 18 percent drop in car manufacturing but smallest so far this year
  • What a difference a year makes – car production 59% down
  • UK car production down nearly 59% in January
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