Car production down but home market helping

UK car production fell almost 3% in February although continuing strong demand from the home market helped to bolster the industry.

In total, 129,915 cars rolled off production lines last month, a 2.9% fall on the same month last year (2014: 133,730). However, of these 33,813 were produced for the UK market – a 21% increase over a year ago (2014: 27,913).

It was the export sector that really hampered performance with vehicles destined for overseas markets falling by more than 9% to 96,102 (2014: 105,817).

In the first two months of the year more than 250,000 vehicles have been produced, with the UK market showing a 20% on a year ago.

The Society of Motor Manufacturers and Traders said it remained positive for the industry’s future and said UK manufacturers were poised to see a return on the billions of pounds worth of investment they have made.
 
“The outlook for the car manufacturing sector continues to be upbeat. More than a quarter of a million cars have been made in Britain so far this year – a steady performance, which has been led by a strong domestic market,” said SMMT chief executive Mike Hawes.

“The UK’s appetite for British-built cars has consistently grown, with the number of cars produced for the home market increasing 51.9% since 2011.  However, political instability abroad has hit certain export areas which will invariably have a small impact on total output.”
 
He said car makers had invested heavily in UK production facilities, and this was expected to come to fruition in the coming year.

Furthermore, the industry has been buoyed by an increase in the amount of UK-produced components now being used in British-built cars, meaning resilient car output would continue to benefit the whole sector.

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