Figures issued by the SMMT show that UK car manufacturing rose 23.5% in February to 138,206 units. The strong gain to car output was led by exports, which were up 21.7% in February to 113,252 units.
UK car production in the first two months was up 19.6% to 265,675 units. Car exports in the period were up 17.3% to 219.442 units.
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CV output fell slightly by 2.7% in February (to 9,655 units) and is down 2.0% over the first two months of the year (to 19,499 units). UK engine production increased by 3.6% in February and 4.3% over the year-to-date.
“Car manufacturing rose 23.5% in February maintaining the trend of strong export-led growth and confirming the importance of manufacturing to a rebalanced and prosperous economy,” said Paul Everitt, SMMT Chief Executive.
“The UK automotive sector continues to attract investment and generate new jobs. Despite recent success there can be no complacency and it is essential the Chancellor uses next week’s Budget to deliver on its growth strategy and boost the UK’s competitiveness by encouraging private sector investment in R&D, capital equipment and skills.”
John Leech, head of automotive at KPMG, said: “The UK auto sector continues to power ahead as car production rose again by 23.5% in February compared to a year ago. This trend is being supported by export-led growth from the emerging markets through premium car manufacturers.
“Recent announcements of major investments by Jaguar Land Rover and Nissan have instilled further confidence into car manufacturing companies in the UK and their supply chains. We expect further volume gains in the months ahead. However, a major concern for many car companies is around the availability of skilled engineers. Debt and equity finance which at the moment is constrained is also becoming a worry for the industry.
“In light of these concerns, next week’s UK Budget will be watched very closely by the manufacturing sector. What will support manufacturers in the UK is private sector investment in research and development, a freeze on business rates and a focus on skills development in innovation and technology. Above all, manufacturers expect and want more ‘above the tax line incentives’ which can be more widely accessed by the industry than the anticipated package of corporation tax breaks.”
