(Alliance News) - UK car and commercial vehicle production fell last month amid issues including weak exports, model changeovers and restructuring, new figures show.
Vehicle production fell by 8.2% in March compared to a year ago, with 72,511 units leaving factories, according to the Society of Motor Manufacturers and Traders.
The number of cars built was 69,755, down by 0.8%, while 2,756 commercial vehicles were produced, 68% fewer.
The SMMT said car output was affected by a parts supply challenge temporarily pausing production at a large plant, weak exports to Asian and US markets, and model changeovers, while commercial volumes continued to reflect restructuring.
Exports of cars and CVs fell, down by 4.3% and 54%, to 49,339 and 1,602 units respectively.
Despite this, production for overseas buyers still accounted for 70% of vehicle output, with the EU remaining the UK's largest global market, taking 91.6% (1,467 units) of CV exports and 62.6% (30,899 units) of car exports.
EU demand for UK-built cars rose for a fourth consecutive month, said the SMMT.
Chief executive Mike Hawes said: "Car production stabilising in March is welcome news for both assembly and the wider supply chain.
"Government's recent intervention to bring down electricity costs will provide a major and long-called for boost, but the scheme's benefits must be delivered urgently as the geopolitical situation offers little optimism.
"We must ensure any 'Made in Europe' proposals from the European Commission do not exclude the UK as the two industries are integrated such that both would suffer if the free trade provisions enshrined in the Brexit deal were undermined.
"The EU and UK must work together to avoid that scenario – and the looming threat of tariffs arising from stricter rules of origin on electrified vehicles – to ensure a positive outcome for industry, economies and consumers on both sides of the Channel."
By Alan Jones, Press Association Industrial Correspondent
source: PA
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