Export Demand Drives U.K. Output Up 16.4% in April

U.K. car manufacturing continues making significant gains with the April build up 16.4% to 149,334 units, the ninth consecutive month of growth.

The Society of Motor Manufacturers and Traders says increasing overseas demand again was the driving force behind the growth as production for export jumped 23.7% year-on-year to 121,732 units, counterbalancing a 7.8% decline to 26,602 built for the domestic market.

Last month’s result left the year-to-date build up 10.8% at 588,024 units, with exports rising 14.3% to 451,385 and domestic output up 0.9% at 136,639.

SMMT CEO Mike Hawes says the U.K. car-manufacturing sector is continuing to thrive with a steady domestic market and surging demand from overseas, including the biggest export destination, Europe.

The commercial-vehicle build eased 0.9% year-on-year in April to 8,548 units, with production for the home market rising 13.6% to 4,047, not enough to offset an 11.2% dip in export orders to 4,501.

After four months, CV output was up 0.4% year-on-year to 32,187 units, with the export build climbing 9.6% to 16,951 and production for the home market down 8.2% at 15,236.

“Following the substantial rise in volumes last year, we can expect production growth to ease slightly over coming months,” Hawes says of the CV segment. “However, with continued demand for British-built vans and trucks at home and around the world, the sector’s outlook is positive.”

U.K. engine production in April rose 14.6% to 231,628 with the build for the domestic market up 50.8% year-on-year to 99,041 units. Export orders eased 2.8% to 132,587 units.

After four months, engine production was up 6.2% at 899,516 units with the domestic market rising 32.3% to 388,332 but export shipments off 7.7% at 511,184.

Hawes credits April’s strong performance in domestic output to significant investment in new U.K. facilities that created additional capacity now being fulfilled.