Dip in sales hits automotive production

DECLINING demand for cars and vans across the Eurozone dented UK automotive production during September, latest figures show.

The Society of Motor Manufacturers and Traders said car output fell 5.8% last month although it remains up 10.2% for the year-to-date.

Commercial vehicle output fell 20.2% for the month, with levels declining 7.5% over the year so far.

UK engine production declined 12.8% in September, with January-September levels down 0.4%.

Paul Everitt, SMMT Chief Executive, said: “Declining demand for cars and vans across the major European markets impacted UK vehicle and engine production in September.

“Total UK vehicle manufacturing in the year so far has increased 8.7%, but monthly output fell by 7% in September. The strong demand for UK products outside Europe and the investment committed by major vehicle manufacturers will secure future growth, although the coming months will be challenging for companies at all levels in the supply chain.

“European governments must focus on securing financial stability and economic growth or they risk long-term damage to key industries.”

Figures show 128,192 cars rolled off the production lines last month, with 102,365 (79.9%) destined for export. Of the 1.083m cars made so far this year, 888,865 (82.1%) have been shipped abroad.

Encouragingly for the UK market, production levels during September were up 9% on last year at 25,827 and for the year-to-date the figure is higher by 13.3% at 194,411.

The number of engines being exported last month declined by 23.1% to 127,627 units, reflecting the weak demand across the continent.

The picture was healthier for the domestic market with production at 85,425 units, up 9.2% on the same month last year.

Close