UK car production down -42.8 per cent in June

UK car production fell -48.2% in June with 56,594 units made, according to figures by the Society of Motor Manufacturers and Traders (SMMT).

Although movement increased after lockdown, social distancing measures and weak demand continued to restrict output.

June manufacturing for the domestic market was down by -63.8%, reflecting the gradual easing of the UK’s retail lockdown. Production for export also fell, by a substantial -45.0%, although overseas orders accounted for nine out of 10 vehicles built as key global markets, including in the EU, China, US, South Korea and Japan, opened for business earlier than the UK.

While June marked a vast improvement on April and May, when only a combined 5,511 cars were built, the performance rounded off the worst first six months for UK car production since 1954. Just 381,357 cars have been built since January, a decline of -42.8% and representing a loss of 285,164 units.

At least 11,349 job cuts have already been announced across the industry because of Covid-19, including manufacturing, supply chain and retail. Furthermore, new analysis suggests car production losses could total 1.46 million units by 2025 – worth just over £40 billion – if no FTA is in place by the end of 2020, forcing the sector to trade on WTO terms with full tariffs applied.