British Car Output to Suffer From Extended Lockdowns - Forex News by FX Leaders
British Car Output to Suffer From Extended Lockdowns

British Car Output to Suffer From Extended Lockdowns

Posted Friday, March 27, 2020 by
Arslan Butt • 1 min read

According to latest estimates by SMMT, car output in Britain could decline by around 18% and possibly more this year, depending on how long factories need to remain shut in a bid to contain the coronavirus outbreak. The auto sector is Britain’s largest exporter, with over 800,000 direct workers.

Previous estimates by the trade body had already anticipated a dip in car production for 2020 because of Brexit-related uncertainties, especially a possible failure to finalize a free trade agreement with the EU during negotiations. However, the car output estimates have been revised further lower feel 1.27 million to 1.06 million, and this is based on the assumption that Britain reaches a free trade deal with the EU before next year.

Over January and February, even before the coronavirus crisis took over, car output was already down by 1.5% in the country. It is expected to see a severe slump in March and remain low as long as lockdowns remain in force.

The automobile industry is Britain has had to grapple with the additional strain of Brexit, even as the sector globally faces challenges due to tighter emission rules, increasing preference for electric vehicles and falling demand for diesel powered vehicles. The uncertainty is likely to fade once carmakers receive clarity on when production can resume again.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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