May manufacturing figures worst since 1946

UK car manufacturing output fell 95.4% last month to make it the worst May performance since 1946. Just 5,314 vehicles rolled off production lines, according to the Society of Motor Manufacturers and Traders (SMMT).

While two thirds of the UK’s automotive plants started getting back to business during the month, capacity was severely held back by social distancing requirements and reduced demand.

Meanwhile, 4,260 cars were exported in May, most into the EU, the US and China, and with English car showrooms not reopening until 1 June, only 1,054 models were built for domestic buyers.

In the first five months, UK factories turned out 324,763 cars, representing a decline of 41.7% on the same period in 2019.

Mike Hawes, SMMT chief executive, said: “May’s figures are yet more evidence of why the UK industry, like its global rivals, needs dedicated support to drive a successful restart. Government assistance so far has been vital in keeping many businesses afloat, but the job isn’t done.

“Measures to boost cash flow, including additional and tailored finance schemes, tax relief and business rates deferral would deliver immediate results when liquidity is most acute. We have to retain the highly skilled jobs the sector provides but also ensure the business conditions are competitive so we can unlock the investment that will drive long-term recovery – a green recovery – which is inextricably linked the sector’s success.”