June rise lifts half year UK car manufacturing
UK car manufacturing grew 1.1% in the first half of 2013, to 764,390 units, according to the Society of Motor Manufacturers and Traders (SMMT).
The growth follows 4.6% uplift in Q2 and a 10.4% rise in June.
While four out of five cars built in the UK are exported, higher output for the home market, up 24.4%, boosted volumes.
Mike Baunton, SMMT interim chief executive, said: “Car output in the UK grew during the first half of 2013, up 1.1% building on a strong 2012 when manufacturing performed above pre-recession levels.
“Subdued demand in some European countries has held back production levels this year, but it is encouraging to see a significant rise in volumes destined for UK buyers.
“Our industry is building and developing innovative, high-quality products that appeal to a global customer base and because of this, independent analysts are confident that car output will grow in the long-term despite economic concerns on the continent.”
John Leech, UK head of automotive at accountancy and advisory firm KPMG, said: “There is consensus that car production in Europe will shrink for the sixth successive year, and hit a 20 year low. While we expect further European government initiatives to boost production, such as the PIVE scrappage scheme in Spain, which was extended in April 2013, there is unlikely to be any recovery this year.
“With strong UK car demand from private buyers driving UK car production, I still expect UK car production will grow again in 2013 notwithstanding the challenges presented by our major export market. This will make it the fourth consecutive year of growth, contrasting sharply with the rest of Europe. Our medium-term forecast also remains positive, with UK vehicle production set to grow from about 1.5m to 1.9m in 2016, based on manufacturers’ latest plans.”
