COVID-19 resurgence has yet again dented car output in the UK with around 51,093 units rolled out in August, decline of 44pc from the prior year according to figures released by Society of Motor Manufacturers and Traders (SMMT). 

 

Production ramp up was hindered amid the COVID-19 crisis with a second wave reported which resulted in weak demand in key overseas markets coupled with low demand within the country. 

 

SMMT noted that August 2019 was an usually strong month in terms of production despite customary summer maintenance shutdown period. 

 

Production for UK buyers sunk 58pc in August to about 7,795 units and for exports down to 42pc to 43,244 units. Approximately 85pc of the total cars produced accounted for exports in August which signifies the importance of trade to auto sector and the economy. 

From Jan-Aug, production is 40pc lower which represents a loss of 348,821 units.

 

In the UK, with a second wave of COVID-19, lockdowns is several places are being observed with tighter and stricter norms to flatten he COVID curve. Such a phase has been critical for the automotive sector, stated SMMT as companies cannot run on their full capacity and it obstructs supply chain. 

 

UK is on the course of producing under 885,000 cars for the year which is 34pc lower on 2019, stated SMMT. There can be an improvement on the production side if tariff free FTA is placed which would help UK car production to reach desirable levels. 

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