UK engine production drops by nearly 30% for January

Engine production for the UK's automotive sector has dropped by 29.3% to 168,291 units for January when compared to the same period last year, according to the Society of Motor Manufacturers and Traders (SMMT).

This comes as production for domestic and overseas markets falls -27.2% and -30.8% respectively for the month when compared to 2020.

Read more: Volvo reports global sales increase of 30.2% for January

This marks the 13th consecutive month of decline as the automotive sector looks towards the March budget for support.

Mike Hawes, SMMT Chief Executive, said: “It has been an extremely challenging start to the year for UK engine manufacturers who have seen their output severely dented by the ongoing pandemic, a subdued market, and border friction following the agreement of the UK/EU trade deal.

"While there is a roadmap out of lockdown, the sector still faces multiple headwinds and so the Chancellor’s Budget next week is an opportunity to enhance the industry’s competitiveness and ensure that the UK’s skilled engine building workforce is part of the future of the sector as it transforms to electrified powertrains.”

The automotive industry is a vital part of the UK economy accounting for a £78.9 billion turnover and £15.3 billion value-added.

With some 180,000 people employed directly in manufacturing and 864,000 across the wider automotive industry, it accounts for 13% of total UK export of goods and invests more than £3 billion each year in automotive R&D.

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