• British car production fell 11% year on year in July, with manufacturing for the domestic market collapsing by 35%.
  • The drop is due to model changes, seasonal adjustments and upcoming changes in emissions standards, the Society of Motor Manufacturers and Traders (SMMT) said on Tuesday.
  • 955,500 cars have been built in the first seven months of the year, which is down 16% for the UK domestic market.
  • "To ensure future growth, we need political and economic clarity at home, and the continuation of beneficial trading arrangements with the EU and other key markets," said SMMT Chief Executive Mike Hawes.

British car manufacturing fell by 11% in July compared to the same time last year, struck by model changes, seasonal adjustments and upcoming changes in emissions standards, an industry body said on Tuesday.

Production last month was at 121,051 units, with output for domestic markets collapsing by 35% and car manufacturing for exports falling by 4.2%, the Society of Motor Manufacturers and Traders (SMMT) said.

"The bigger picture is complex and month-by-month fluctuations are inevitable as manufacturers manage product cycles, operational changes and the delicate balance of supply and demand from market to market," said SMMT Chief Executive Mike Hawes.

The SMMT added that figures from last July had also been a particularly strong due to the launch of several new models.

Almost 955,500 cars have been built in the first seven months of this year, which is down 16% for the UK market and 1.2% for export markets. But July’s report is an improvement on June when production fell 47%.

The British car industry is concerned about the possible impacts of Brexit because of its heavy reliance on the European supply chain and the EU’s status as Britain's biggest car export market.

"To ensure future growth, we need political and economic clarity at home, and the continuation of beneficial trading arrangements with the EU and other key markets," said Hawes.

The UK exports most of the cars it makes, but it is also a big importer of foreign autos with about 86% of new vehicles coming from foreign markets, and 69% of new cars coming from the EU.

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