Carmakers more reliant on Europe

BRITAIN’S carmakers have become increasingly reliant on Europe as domestic demand falls and a “perfect storm” of factors hits the industry.

Data from the Society of Motor Manufacturers and Traders (SMMT) revealed that in the first half of the year, almost nine out of every 10 cars rolling off British production lines were for export.

This compares with eight out of 10 a year ago, and is partly driven by slowing demand in the UK as waning consumer confidence means motorists are making fewer major purchases. On a monthly measure, the number of cars built in Britain for domestic demand almost halved in June as a “perfect storm” hit. Causes included getting cars through a new emissions regime, model changes and a summer slowdown.

These combined to skew the June figures for UK demand, recording a 47.2pc drop on the same month a year ago, falling to 15,647. Overall production, including cars for export which rose 6pc, slipped 5.5pc to 128,799.

Mike Hawes, boss of the SMMT, said: “These figures are a reminder of the exports-led nature of UK automotive, and June’s results demonstrate the numerous and varied factors which create a perfect storm of home market output.”