UK car manufacturing grows 1.1% in 2013 H1

Car manufacturing in the UK has grown during the first half of 2013, with acceleration to 4.6 per cent coming in the second quarter and a 10.4 per cent rise in June. The SMMT says that while four out of five cars built in the UK are exported, higher output for the home market, up 24.4 per cent, has boosted volumes.

“Car output in the UK grew during the first half of 2013, up 1.1 per cent building on a strong 2012 when manufacturing performed above pre-recession levels,” said Mike Baunton, SMMT interim chief executive. “Subdued demand in some European countries has held back production levels this year, but it is encouraging to see a significant rise in volumes destined for UK buyers. Our industry is building and developing innovative, high-quality products that appeal to a global customer base and because of this, independent analysts are confident that car output will grow in the long-term despite economic concerns on the continent.”   

CV output rises in June, down in 1H 2013

Commercial vehicle output also rose 1.4 per cent to 8,480 units in June, off the back of increased volumes for the home market. However, CV manufacturing overall fell 13.5 per cent during the first half of 2013 to 48,517 units. A fall in export volumes has impacted growth with just 51 per cent of volumes going overseas for the year-to-date versus 61 per cent a year ago.

“June’s CV output provides a welcome boost to our commercial vehicle industry, with volumes increasing 1.4% in the month, following a 17% surge in home market demand,” said Nigel Base, SMMT commercial vehicle manager. “Year-to-date volumes offer a slightly gloomier picture, falling 13.5% in the first half of 2013 as CV manufacturers continue to feel the effects of weak demand abroad. The remainder of the year will be challenging, but strengthening UK demand is expected to support domestic manufacturers of vans, trucks buses and coaches.”  

Engine manufacturing rose 10.9 per cent in June to 225,266 units. Despite the surge in June, output during the first half of 2013 was down 1.2 per cent to 1,319,998 units. The SMMT says engine production has performed in line with overall UK vehicle manufacturing trends. As for vehicles, weak export volumes are constraining overall growth.