Sluggish European demand dents car production
UK car manufacturing fell by 8.4% in May as the industry was impacted by continuing weakened demand across the euro zone.
Nevertheless, sector analysts have said the industry is still out-performing pre-recession levels and demand in the home market continues to grow.
In total, 129,355 vehicles were manufactured last month and for the year-to-date, while volumes have remained flat during the first five months of 2013, the overall total of 632,804 is down just 0.6% on last year.
Export volumes fell 12.3% and are down 6% for the year-to-date. Nevertheless, 81.4% of all the vehicles made last month were destined for overseas markets.
Mike Baunton, interim chief executive of the Society of Motor Manufacturers and Traders said: “Despite output falling this month due to weak European demand, UK car manufacturing in May was above 2007 levels.
“Production levels are holding firm for the year so far, testament to the appeal of UK-built products around the world and significant growth in volumes built for the home market. While economic challenges abroad will impact on car output in the short-term, high-value investment by global automotive companies sets UK industry on course for prosperity in the long-term.”
The picture was less rosy for the commercial vehicle sector where production fell 20% in May to 7,560 units. Engine production was also impacted by the declining demand in Europe, with volumes down 8.2% last month.
