Car production boom driving export growth

THE growth of the UK car industry continues to have a beneficial effect on the country’s balance of trade, latest production figures have shown.

Last month saw the five millionth car exported from UK since the beginning of 2010 – the best performance of any decade.

The quality of the cars produced now is also underlined by the fact the average value of a vehicle exported today is more than double that of a decade ago at £20,600 (2004: £10,200).

Figures from the Society of Motor Manufacturers and Traders (SMMT) show 132,570 cars were manufactured in July – a rise of 2.8%. Of these, 102,981 (77.7%) are exported.

Exports have hovered around the 80% production level for some time and the picture for July would probably have been better had the situation in traditional European markets been more favourable.

The North West’s three major manufacturers, Bentley, Jaguar Land Rover and Vauxhall, all sell more product overseas than they do for the domestic market.

Mike Hawes chief executive of the SMMT said: “The UK automotive industry continued its renaissance in July, with the month marking five million car exports since 2010.

“This is a major milestone and testament to the burgeoning reputation of UK automotive excellence and demand for British-made cars. Significantly, UK car export values have doubled over the past decade – reflecting the diversity of the products we make and proving the sector’s worth as a global investment opportunity.”

Production for the year to date in up 3.4% at 923,884 (2013: 893,336). Exports over the same period are up 0.3% at 78.8%.

However, engine output fell 10.2% last month compared to July 2013 to 205,907 units. For the year-to-date, production is down 2.3% at 1,513,350 (2013: 1,549.272). The number of engines exported declined 6.2% in July, although for the year-to- date is up 5.1%.

Whereas the new car sector continues to be buoyant the same cannot be said for the UK’s commercial vehicle industry.

Output continued its decline in July, with volumes down 25% to 6,338 units, continuing a trend seen over previous months. Year-to-date output is down 23.3% but hopes are this situation will pick-up.

“UK commercial vehicle production fell by a quarter over last July, continuing the trend seen over the last year,” said Mr Hawes.

“With the effects of the 2013 restructuring still evident, as well as the spike in truck registrations towards the end of last year, this was to be expected. The coming months should provide more optimism, however, with European demand showing sustained improvement.”

Close