Weaker export demand flattens UK car production
THE UK car industry continues to be affected by the slowdown in export markets across Europe and some of the emerging economies in the East.
Car output fell very slightly last month by comparison to production output during the same month last year – 137,347 (2013: 137,624), a fall of 0.2%.
However, the continuing strength of the UK market by comparison to those abroad was evident by a 31.8% rise in domestic output with 28,628 cars produced last month (2013: (21,714).
However, export demand saw the number of cars produced for global markets falling 6.2% from 115,910 in November 2013 to 108,719 last month – 79.2% of all cars produced last month were destined for export markets (2013: 84.2%).
The year-to-date output remains stable at 1,419,427 units, a drop of 0.3%.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “Model changes and economic uncertainty in export markets have flattened UK car production, but the industry remains in a strong position with growth expected to return next year.
“Global demand for UK automotive engineering continues to be at a high level, and manufacturing plants are seeing the benefits of significant recent investments. UK-built cars offer a vast range of technologies to lower carbon emissions and improve air quality, underlining the country’s important role in the continuing drive to reduce all emissions.”
The picture was much the same in the commercial vehicle sector where manufacturing output fell 0.7% last month.
A resurgent home market helped fuel demand growth for a second month, but exports remained subdued.
The year-to-date fall of 21.6% is affected by 2013 restructuring and the SMMT said a more positive 2015 was expected.
“The signs remain positive for UK commercial vehicle production after many months of decline, with output in November almost level,” said Hawes.
“The strong UK market is driving the turnaround, while export markets continue to struggle. We anticipate 2015 to be a better year as new models ramp up and the effects of last year’s restructuring no longer apply.”
The biggest declines were seen in the production of engines, where output fell 12.6% last month, although this has been attributed to the retooling taking place ahead of new model launches.
In total, 202,132 engines built in November and the year-to-date output remains subdued with a 7% fall compared to 2013 at 2,235,331 units.
The SMMT said recent investments into UK engine manufacturing, such as the launch of the £500m Jaguar Land Rover factory at the i54 site near Wolverhampton, meant long-term expectations were positive for the industry.
