UK car production dips as export volumes decline
UK CAR production dipped in February as demand for vehicles in export markets declined almost 10%.
Despite the fall, the automotive sector’s leading trade body has said it remains confident of output growth this year, backed by continuing strong demand in the UK.
Latest figures issued by the Society of Motor Manufacturers and Traders show car manufacturing declined 0.7% year-on-year in February. The main reason is the fall in the number of cars exported, which fell 9.8% last month compared to a year ago.
The situation was made worse because of strong comparisons with February 2012 when production rose 26% compared with the same month in 2011.
Nevertheless, production levels were still high with 137, 458 cars produced last month (2012: 138,483). For the year-to-date, production levels are up 0.2% on last year.
The SMMT said part of the reason for the growth was high demand in the UK was partially offsetting the fall in the number of vehicles being exported. So far this year the domestic market has risen by a third.
The situation was less robust in the commercial vehicle sector, where output levels fell 17.1% in February to 8,005 units. For the first two months of 2013 output was 18.8% down, at 15,827 units.
Similar to the car market, UK demand grew 2.6% but this was offset by a 31% decline in the number of vehicles produced for export.
The picture was similar for engine production where volumes declined 5% with both domestic and export levels down.
Mike Baunton, SMMT Interim Chief Executive, said: “Following the outstanding rise a year ago, it’s pleasing to see car production continuing to maintain those robust manufacturing levels.
“The UK’s commercial vehicle makers continue to feel pressures of weak economic conditions in wider Europe, with engines also following suit. However, independent forecasters expect to see more sustained levels through the rest of the year ahead.
“Manufacturing of commercial vehicles in the UK continues to struggle with the fall in European demand. However, with the Commercial Vehicle Show coming up (at the NEC) in April, we have an opportunity to showcase the very best in new technology, environmental performance and safety of these vehicles which are so crucial to the UK economy.”
