Car industry enjoys its best month for 17 years as export demand grows
The British car industry enjoyed its best month for 17 years in March as strong export demand dramatically increased production levels.
A total of 170,691 vehicles rolled off production lines last month, an increase of 7.3% on the same month last year and the biggest month for the industry since 2000.
Effectively, one car was exported every 20 seconds in March with export demand up 10.6% on previous year. Of the 170,691 vehicles made in March, 76.7% (130,838) were destined for overseas markets.
The performance (see below) also meant the industry saw its busiest first quarter since 2000, with 471,695 vehicles produced to the end of March, an increase of 7.6% on last year.
The figures help to mask a small decline in demand from the domestic market, with the 39,853 total representing a 2.2% decline on the same month last year. Over the quarter, demand from the home market declined 4.3%.
Mike Hawes, chief executive of The Society of Motor Manufacturers and Traders (SMMT), said: “UK car manufacturing is accelerating thanks to billions of pounds of investment committed over the past few years.
“A large proportion are the latest low emission diesels and it’s essential for future growth and employment that we encourage these newer, cleaner diesels onto UK roads and avoid penalising consumers who choose diesel for its fuel efficiency and lower CO2 emissions.
“Much of our output goes to Europe and it’s vital we maintain free trade between the UK and EU or we risk destroying this success story.”
The strong demand is also good news for the supply chain sector, whise own performance is dictated by the needs of the OEMs.
Reductions in the value of sterling are also dictating demand, with UK manufactured products now cheaper for foreign buyers.
