UK manufacturing of business autos (CVs) declined 31.5% in January with simply 5,616 items leaving manufacturing unit gates, in accordance with information from the Society of Motor Producers and Merchants (SMMT).
“The continued impression of the coronavirus pandemic, friction in commerce with the EU following the Brexit deal and weak demand all affected output, leading to a fourth consecutive month of decline and the worst begin to the 12 months since 2015,” SMMT mentioned in an announcement.
Manufacturing remained subdued for each home and abroad markets, down 28.8% and 33.6% respectively, with demand from most export markets falling, together with the EU, the most important market. Over half (53.2%) of the CVs made had been exported.
SMMT chief govt Mike Hawes mentioned: “After a pointy fall in CV manufacturing final 12 months, it is disappointing to see output fall once more at first of 2021. With so many roles at stake and an actual must safe funding for this important sector, subsequent week’s price range [government financial plan] is a chance for the chancellor [finance minister] to ship a shot within the arm to the trade.
“We want the best circumstances that may increase enterprise confidence and tackle depleted order books throughout the trade, which implies an extension of the [COVID-19] furlough scheme, a evaluate of enterprise charges to incentivise manufacturing funding and improved fiscal measures to assist uptake of the newest alternatively fuelled business autos.”
Reflecting each decreased automobile and CV output final month, UK engine manufacturing additionally fell, by 29.3% to 168,291 items with home and export quantity off 27.2% and 30.8% respectively.
Hawes added: “It has been a particularly difficult begin to the 12 months for UK engine producers who’ve seen their output severely dented by the continuing pandemic, a subdued market, and border friction following settlement of the UK/EU commerce deal. Whereas there’s a roadmap out of lockdown, the sector nonetheless faces a number of headwinds and so the price range is a chance to boost the trade’s competitiveness and be certain that the UK’s expert engine constructing workforce is a part of the way forward for the sector because it transforms to electrified powertrains.”
