UK car manufacturing slows slightly in October

UK car manufacturing slows slightly in October

The latest figures from the Society for Motor Manufacturers and Traders (SMMT) show that car manufacturing was actually down in October, compared with the same month a year before.

The figures show that just 151,795 vehicles were manufactured in the UK in October 2016, which was a 1 per cent fall compared with October 2015. The SMMT voiced an opinion that the slowdown was unlikely to be the result of the Brexit vote and is more likely to be attributable to the unsustainable rate of manufacturing over the past few months.

The news that the rate of manufacturing, although slower in October, is still extremely high, will be cautiously welcomed by dealers. The fact that there hasn't been a major drop off in manufacturing since the Brexit vote will allay the worst of the industry's fears.

Dealers hoping to continue to cash in on the market, which looks healthy, may want to expand their operations and stock more vehicles. This can result in increased sales, but dealers need to update their dealership insurance policy to reflect any new stock.

Perhaps the most interesting news from the new figures is that 80 per cent of the cars manufactured in the UK were exported overseas. This was the 15th consecutive month in which exports have risen, according to the SMMT.

The SMMT's chief executive, Mike Hawes, said that the government's ability to negotiate trade terms could be vital for the industry post-Brexit: "Given this dependence on global trade, it is crucial that British-built cars remain attractive to international buyers and exports are not subject to additional tariffs, costs and other barriers to successful trade."