Strong export demand drives growth in UK car production

Strengthening export demand fuelled a growth in UK car production in February, according to latest figures.

There were 153,041 vehicles produced last month (2016: 141,764), an increase of 8%.

The figures, produced by The Society of Motor Manufacturers and Traders, show the number of vehicles produced for export rising 13.4% to 118,898 (2016: 104,880) – with the percentage of vehicles exported rising to 77.7%, up from 74% for the same month last year.

The percentage of vehicles produced for export during the first two months of the year was also up, at 78.7% compared to 75.7% for the same two months last year.

The performance was in contrast to the home market, where the number of vehicles produced declined 7.4% to 34,145 (2016: 36,884).

For the first two months of 2017, production is up 7.8% at 301,006 (2016: 279,316), although the home market has declined 5.6% to 64,172 (2016: 67,995).

This was offset by export demand, which increased 12.1% to 236,834 (2016: 211,321).

The total for the first two months marks the first time since 2002 that the 300,000 barrier has been breached.

Mike Hawes, SMMT chief executive, said: “Today’s figures illustrate the continuing global popularity of British-built vehicles and the export-led nature of the industry.

“With eight out of every 10 cars we produce destined for international markets – and half of those for customers in the EU – we must avoid barriers to trade, whether tariff, customs or other regulatory obstacles, at all costs. To do otherwise would damage our competitiveness and threaten the continued success of UK automotive manufacturing.”