Car production sees big bounce-back in July

British car manufacturing saw a bounce-back in July, with production levels rising 7.8%.

Latest figures from the Society of Motor Manufacturers and Traders (SMMT), show 136,397 new units rolling off UK production lines during the month.

The SMMT said the figures were a result of carmakers ramping up production for new and existing models in anticipation of the new 67 registration plate in September.

The figures are likely to make comparisons in August tough, as the month is the quietest in the production calendar due to summer factory shutdowns. This is an essential period for the manufacturers as it allows vital plant maintenance, upgrades and re-tooling to be completed.

July’s figures follow seven successive months of decline, with vehicle produced for the home market rising 17.7% – an increase of 4,490 units – while exports grew by 5.3%. Cars made for overseas buyers represented nearly 80% of output in the month with 106,525 units shipped abroad, compared with the 29,872 for the UK market.

Year-to-date new car production remains solid and has now passed the one million mark. Though showing a slight dip of 1.6% compared with 2016, the figures were in line with expectations.

Since January, overseas customers have taken delivery of 78.8% of new cars made in Britain, with UK manufacturers now exporting cars to more than 160 different countries around the world.

Mike Hawes, SMMT chief executive, said: “UK car production lines stepped up a gear in July, as usual bringing forward some production to help manage demand ahead of September and routine summer factory shutdowns.

“As the timing and length of these manufacturing pauses can shift each year, market performance comparisons for July and August should always be treated with caution, but as long as the economic conditions at home and abroad stay broadly stable we expect new car production to remain in line with expectations for the rest of 2017.”

The SMMT was left red-faced yesterday when it emerged its latest used car figures were wrong.

The society had said on August 16 that used car sales had fallen by 13.5% in Q2.

However, a computer glitch during the calculations badly skewed the data.

The actual fall was just 0.7%.

The previous figures had caused a few market jitters adding to concerns that consumers might be reining back on their spending.