Figures released by the Society of Motor Manufacturers and Traders (SMMT) show that car production levels in June continued this year’s bounce-back from the depleted output levels of last year.
Car production in June rose by 28.6% over last year to 117,938 units. First half car production was up 55% on last year at 636,660 units.
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Commercial vehicle output rose by 24.9% in June and 49.6% in first six months. UK engine production was up 18.1% in June and by 35.3% over the year-to-date.
“UK automotive production rose in June with steady improvement across the car, commercial vehicle and engine sectors against a weak 2009,” said SMMT chief executive, Paul Everitt.
“Continued investment in new products and technology is helping to sustain growth for the sector while rising demand from export and home markets is maintaining momentum. The coming months remain uncertain and sustaining economic recovery in major markets around the world remains the industry’s top priority.”
However, analysts are warning that the output picture for the second half of the year in Europe is clouded by uncertainties over the strength of the economic recovery and the possibility of production cutbacks.
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By GlobalDataCommenting on the UK production figures Mike Steventon, Partner in KPMG’s Automotive Group, said: “UK car production saw another month of strong growth in June fuelled by demand from overseas markets for luxury cars such as Jaguar and Land Rover. This is great news for the UK economy as the majority of cars built in the UK are exported.
“Demand for prestige cars is growing globally, which has led to many of the luxury car manufacturers ramping up production.
“However, the story in volume car production isn’t so promising. The figures remain positive but the underlying issue of overcapacity remains the elephant in the room. Many forecasters predict demand for volume cars across Europe could slow down considerably in the second half of the year, resulting in a cut in production.”
