Export demand drives growth in output for UK car industry
THE UK’s automotive industry has continued its strong growth with output in March increasing by almost 10%, latest figures have shown.
Overseas demand is driving growth with the volume of vehicles produced for export rising by more than 14% compared with the same month last year.
Figures released by the Society of Motor Manufacturers and Traders show output increasing 9.8% last month to 159,074 units.
Export volumes helped to offset a slight reduction in volumes for the domestic market which showed a 1.4% fall for the month.
It was a trend reflected in first quarter figures, with exports for the first three months growing 11.1% to 329,653 units, while domestic output also rose by 8%, buoyed by stronger growth in January and February, to take overall manufacturing volumes to 443,581, an increase of 10.3%.
The news comes as the latest productivity figures released for 2015 show that each employee in automotive manufacturing generated on average £79,700 per car produced, up 1.3% on 2014 – the highest on record, and around twice the UK national average.
Mike Hawes, SMMT chief executive, said: “UK car plants were at their busiest for 12 years in March, with a vehicle rolling off production lines every 16 seconds thanks to heightened international demand for British-built cars. Much will depend on economic and political conditions in key markets but, with several brand new global models starting production here in the first quarter alone, the prospects for future growth look bright.”
Engine production showed a slight fall in March, despite significant growth in domestic demand for British-built engines. Overall, output was down 1.5% for March.
Mr Hawes said: “New UK facilities this year have catered predominantly for the growing home market, with manufacturing for export down 9.3%. However, overseas demand remains strong, with customers in international territories continuing to take the bulk of output, and accounting for 56.7% of overall production.”
