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Car production continues to fall after huge drop in domestic demand

Just under 161,500 cars left UK factories in November.

The number of cars built in the UK fell in November compared to a year ago amid a continuing reduction in production for the home market, new figures show.

Just under 161,500 cars left UK factories, down by 4.6% on the same month in 2016 after a huge 28% drop in domestic demand, the biggest decline of the year.

Exports rose by 1.3%, reported the Society of Motor Manufacturers and Traders (SMMT), which revealed that almost four out of five of the 1.5 million cars built this year have gone to one of 160 global markets.

Mike Hawes, SMMT chief executive, said: “Brexit uncertainty, coupled with confusion over diesel taxation and air quality plans, continues to impact domestic demand for new cars and, with it, production output.

“Whilst it is good to see exports grow in November, this only reinforces how overseas demand remains the driving force for UK car manufacturing.

“Clarity on the nature of our future overseas trading relationships, including details on transition arrangements with the EU, is vital for future growth and success.”

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