Car manufacturing 14-year high

UK car manufacturing reaches 14-year high

UK car production increased by 9.1% in August, thanks to strong demand at home and overseas.

The Society of Motor Manufacturers and Traders (SMMT) said on Thursday that 109,004 vehicles rolled off British production lines last month -- the highest volume recorded for August in 14 years.

That takes the total for the year so far to 1,132,727 vehicles, up 12% year-on-year.

Production for the domestic market rose 6.2% last month to 27,804 units, while export volumes grew 10.2% to 81,200.

Mike Hawes, SMMT chief executive, commented:

"August's strong performance is good news for car makers and welcome news for the UK economy, which depends on this thriving sector for an increasing share of UK exports. British car producers are exporting a diverse range of high quality, attractive new models that are in demand across the world thanks to multi-billion-pound investments made in UK plants over the past few years. Future success depends on continued investment in plant and products and that in turn depends on the UK maintaining internationally competitive business and trading conditions."

The SMMT also reported on Thursday a decrease in commercial vehicle production, attributing this to a readjustment of the market after particularly strong growth in 2015.

The number of commercial vehicles produced in the UK last month fell 12.2% to 3,185 units.

"Underlying demand for UK CV production is broadly stable, despite the headline falls that are predominantly due to a strong performance in 2015 driven by regulatory changes that altered fleet renewal patterns," Hawes explained

It's a trend we expect to continue throughout the year.
- Mike Hawes, SMMT chief executive