According to data released by the Society of Motor Manufacturers and Traders (SMMT), new car production declined by 10.6% YoY in July in Britain over weakening external demand. Sales of diesel-powered vehicles have been declining in Europe while car demand in Chinese markets have been falling lower, driving factories to produce fewer units.

Car exports have declined by 14.6% even as domestic demand for cars climbed 10.2% higher during July. However, strong domestic demand was unable to support the sector much, where 8 out of 10 cars manufactured are exported.

Overseas shipments of cars has declined by 20.2% since January 2019, while overall car production in the UK has declined by 13.5% since the beginning of this year. According to SMMT Chief Executive, Mike Hawes, “Another month of decline for UK car manufacturing is a serious concern. The sector is overwhelmingly reliant on exports and the global headwinds are strong, with escalating trade tensions, softening demand and significant technological change.”