Export demand drives 15% growth in UK car production

OVERSEAS demand saw UK car production rise by more than 15% in February – underlining the strength of the automotive industry and the manufacturing sector in general.

Production was up 12% in the first two months of the year compared with 2010, flying in the face of predictions the first half was set to be a difficult period for auto manufacturers.

Further strength of the sector was a 10% increase in engine production in February, compared with the same month last year and an 11% rise over the year to date.

However, the picture was not quite so rosy for the commercial vehicle sector with output down 3% for February, although it remains up 2.6% for the year to date.

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: “UK vehicle and engine production continue to lead a manufacturing recovery.

“A 27% increase in export demand highlights the strength and competitiveness of UK products. Next week’s Budget will be crucial in creating the conditions for further investment in skills, R&D and capital equipment, all essential for growth and maintaining global competitiveness.”

February saw 111,983 cars produced, of which 93,038 were for export. In the year to date, 222,178 vehicles have been made with 187,127 destined for foreign markets.

The pattern was similar for engines, with 121,906 units produced last month and 242,068 for the year to date. Of February’s volume, 99,344 were for export, with in the first two months of the year 199,163 units have been exported.

There were 9,923 Commercial vehicles produced last month, with 6,296 heading abroad. In total, 19,890 have been made in the first two months of the year with 12,036 going for export.

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