Car production in the UK contracted sharply during August on account of the coronavirus pandemic severely hurting demand for new vehicles. According to SMMT, British car production was down by 45% YoY in August, with only a little over 51k cars being manufactured.

Overall car output for the first eight months of the year has declined by 350k when compared to the same period in the previous year. The SMMT estimates that overall car production for 2020 could be around two thirds of the levels seen in 2019.

SMMT Chief Executive Mike Hawes observes, “Companies are bracing for a second wave with tighter social and business restrictions making the industry’s attempts to restart even more challenging.”

In addition to the pressures due to the ongoing coronavirus pandemic, the car manufacturing industry in Britain – which is the largest exporter of goods in the country, also faces substantial risk over Brexit uncertainties. Hawes adds, “A ‘no deal’ scenario would be disastrous, with car volumes potentially falling below 750,000 by 2025, hampering sector efforts to drive investment into the new skills, facilities and technologies that will be integral to delivering a zero-carbon future.”