The production of cars in the UK rose 16.6% to 110,033 units in April, bucking the downward trend of recent months.

The SMMT said that after a subdued Q1, output so far this year increased 1.5% to 503,449 units.

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It said that growth reflects demand in the home market, up 66.1% in April and in economies outside of Europe. Weak European demand remains a concern, SMMT said.

Independent analysts suggest that UK car manufacturing could grow a third bigger by 2016 with growth expected year-on-year.

“UK car production bounced back in April, up almost 17%, following a sluggish Q1 that was impacted by an early Easter and continuing uncertainty across Europe,” said Mike Baunton, SMMT Interim Chief Executive. 

“Significant growth in output for the home market reflects trends in new car buying in the UK, and the focus on growing in new markets, beyond Europe, has provided further buoyancy to volumes. While demand in Europe overall is very weak, the global appeal of our products, coupled with long-term investment strategies, position the UK on a secure path to achieve further growth and jobs in the sector.”

John Leech, UK Head of Automotive at KPMG comments said: “With new cars sales stabilising in Germany and Spain and still powering ahead in the UK, the mood in the UK car industry is brightening.   UK car production looks set to grow again in 2013, which will make it the fourth consecutive year of growth contrasting sharply with the rest of Europe which is expecting its seventh straight year of decline.”

“Compared to Europe, the UK has a higher proportion of premium car plants such as JLR and Mini which export to fast-growing emerging markets and whose consumers have been more confident over the past year.  Our medium-term forecast remains positive, with UK vehicle production set to grow from about 1.5 million to 1.9 million in 2016 based on manufacturers’ latest plans.”

Car manufacturing April 12 April 13 % Change YTD-12 YTD-13 % Change
Total 94352 110033 16.60% 495777 503449 1.50%
Home 13416 22278 66.10% 87693 112531 28.30%
Export 80936 87755 8.40% 408084 390918 -4.20%
% export 85.80% 79.80%   82.30% 77.60%  

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