British vehicle demand stalls after Brexit

Britain made less cars last month for the first time in more than a year, driven by slower domestic need and prompting the industry’s lobby group to renew its call for the government to preserve free trade as Britain leaves the European Union.

Total output dropped by a yearly 1 percent to 151,795 units in October, the Society of Motor Manufacturers and Traders (SMMT) stated on Thursday, although year-to-date volumes remain on course to beat the ten-year high attained in 2015.

Demand for the 81 percent of British-built models which were exported increased marginally in October, however there was a 10.9 percent drop in the output predestined for British purchasers.

The SMMT stated that model modifications, which can decrease output as producers phase out older products and generate more recent vehicles, had an impact on the month-to-month figures.

However separate vehicle registrations data reveals that total sales growth has slowed since the June 23 referendum and increasing organisation demand has compensated for a fall in sales to individuals in every month since April.

Britain’s extremely foreign-owned automobile market backed EU membership ahead of the vote and Nissan, which operates the country’s biggest plant, looked for warranties that its automobiles would not face tariffs before devoting to a major investment.

SMMT President Mike Hawes stated the information showed the need for government to ensure that it would not become more expensive to offer British-made cars abroad.