AFP, LONDON: Investment in the British automotive industry fell by a third in 2017, its trade association said yesterday as it called for a swift agreement on the Brexit transition period.

The Society of Motor Manufacturers and Traders said that only £1.1 billion ($1.55 billion, 1.25 billion euros) of investment earmarked for vehicle and supply chain manufacturing was publicly announced last year.

The figure is down 33.7 per cent from £1.66 billion in 2016. It stood at £2.5 billion in 2015.

“We urgently need clarity on the transitional arrangements for Brexit,” SMMT chief executive Mike Hawes told a press conference. Britain is due to leave the European Union at the end of March 2019.

London and Brussels are yet to sort out the details of a transition period that could last until the start of 2021, intended to allow business time to adjust to whatever trading arrangements apply once the UK leaves the bloc.

“For the transition, we must see business as usual—so staying in the single market, staying in the customs union,” said Hawes.

Due to the uncertainties on the transition and the future trade relationship, “there is a general climate of hesitancy... and its political and economic impact is affecting consumer and business confidence”.