Lloyds automotive report: Car makers fear exports will stall as global economy slows

 
Chris Papadopoullos
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Nissan's Car Manufacturing Plant In Sunderland
Domestic sales have been strong, but three-quarters of cars produced in the UK are sold in foreign markets (Source: Getty)

Britain's car makers are becoming more pessimistic on their growth prospects, citing a weak global economy as the main reason.

A survey of 100 UK car firms showed the global economy was the biggest concern for 43 per cent of them, making it the top worry for the second year running.

The figures from Lloyds Bank’s published this morning also showed the number of firms expecting to achieve growth by entering new markets has fallen to 48 per cent from 68 per cent last year. Over 1.3m cars have been produced in the UK this year, nearly back to pre-recession levels. However, the strongest growth has been in the UK market.

"While the automotive industry is forecasting healthy growth, it’s clear that global instability and uncertainty threatens manufacturers' confidence," said James Walton, manufacturing director at Lloyds Bank.

"In particular, the slowdown in China is a concern given that it is the biggest market for British-made cars outside the EU."

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