According to researcher IHS Automotive, the UK’s vote to leave the European Union may end up costing car manufacturers almost 3 million light-vehicle sales through 2018.
As reported by Autonews, IHS Automotive anticipates worldwide deliveries rising to 89.82 million this year, or about 200,000 fewer than before last week’s referendum, while reducing estimates for 2017 and 2018 by about 1.25 and 1.38 million respectively.
“The UK is, unsurprisingly, anticipated to bear the brunt of the impact,” said IHS Automotive analyst Ian Fletcher. In other words, instead of expanding by 3.2% this year, the UK market could grow by just 1% before it wanes down in each of the next two years.
The likes of Toyota, the world’s largest automaker, has already stated that Brexit may lead to levies of as much as 10% on Auris and Avensis models built in the UK – which in turn would challenge the automaker to cut costs or raise prices.
After last week’s vote, there were different types of reactions coming from within the automotive industry. While the likes of Toyota and Honda said they would continue monitoring developments, Nissan declined to comment on what Brexit could mean for their Sunderland plant, where around 500,000 vehicles are being built each year.