Figures from the Society of Motor Manufacturers and Traders (SMMT) in the UK shows that car manufacturing output fell by 20.8% in July as 85,696 units rolled off UK production lines. Despite factories reopening after COVID-19 forced closures, ongoing economic uncertainty, driven by both the Coronavirus and a possible no deal Brexit, stifled output.

Production for UK buyers fell by a dramatic 37.1% year-on-year, with just 13,434 units leaving factory gates. Manufacturing for export also fell, but by a slightly less substantial 16.8% to total 72,262 units. Exports accounted for more than eight out of 10 vehicles built in July with buyers in overseas markets, including the EU, China and the US.

In the year to date, the impact of the pandemic on key markets, including the UK, means that overall production remains down 39.7%, representing a year-on-year loss of 307,707 cars.

Mike Hawes, SMMT chief executive, said, “With the sector now battling economic recession as well as a global pandemic, it has neither the time nor capacity to deal with the further shock of a ‘no deal’ Brexit. The impact of tariffs on the sector and the hundreds of thousands of livelihoods it supports would be devastating, so we need negotiators on both sides to pull out all of the stops to ensure a comprehensive free trade deal is agreed and in place before the end of 2020.”