UK car production rose for the second consecutive month in July, up 5.6% to 69,127 units, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).
Commercial vehicle (CV) output, however, fell 81.1%, reflecting plant restructuring and a bumper month last year, when the sector recorded the best July in 17 years. When cars and CVs are combined, total vehicle production was down 10.8% in July to 72,006 units.
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Car production for domestic and export markets improved, rising 13.6% and 3.7% respectively with overseas markets taking by far the majority (79.4%) of output. The EU remained the main destination for UK car exports (45.6% share), followed by the US (18.1%) China (7.7%), Turkey (7.2%) and Japan (3.4%). While shipments to the EU and China fell by -7.9% and -7.1% respectively, output for Turkey and Japan grew 35.4% and 14.9%. Exports to the US, meanwhile, rose by 6.8% to almost 10,000 units, reversing three straight months of decline.
The SMMT noted that the US remains the largest single national market for British built cars, underscoring the importance of the UK-US trade deal, and July’s performance illustrates the impact of this deal which came into force on 30 June. Australia, Canada, Korea, the UAE and Switzerland rounded off the top 10 export markets, although combined they represented just 6% of all shipments in the month.
In the year to date, total UK vehicle output is down 11.7% with just shy of half a million units (489,238) produced.
Mike Hawes, SMMT Chief Executive, said: “It remains a turbulent time for automotive manufacturing, with consumer confidence weak, trade flows volatile and massive investment in new technologies underway both here and abroad. “Given this backdrop, another month of growing car output is good news – signalling the sector’s underlying resilience in the face of intense global competition. To unlock sustained growth, however, government strategies must become tangible actions as a thriving automotive sector can support well paid jobs and economic development across the UK.”
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By GlobalData
