Recovering European market stokes car production

UK car production rose 21.3% in April, fuelled by new models and renewed demand from a recovering euro zone.

Last month saw 133,437 (April 2013: 110,033) vehicles roll off production lines around the country, the biggest monthly rise since July 2012. Almost 80% of the new vehicles are destined for export markets.

Year-to-date volumes rose to 538,240, an increase of 6.9% (YTD 2013: 503,449), with the January-April period seeing exports up 8.7% at 424,805 (YTD 2013: 390,918).

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “The thriving nature of the UK car manufacturing industry was evident in April as output grew at its highest rate for almost two years.

“New model introductions are fuelling growth, while Europe – which currently accounts for around half of exports – is now seeing an upturn in demand. As investments continue to be realised, we expect further rises in the coming months; good news for the thousands of suppliers and employees across the country that rely on this industry.”

Commenting on the figures, Simon Heath, KPMG’s automotive M&A specialist, said: “UK domestic demand remains robust and the improving economic conditions in the global economy, particularly in Europe, are driving an uptick in orders from overseas.

“Improving worldwide demand is particularly important to UK-based premium car manufacturers such as JLR, BMW and Bentley.”