European Slump Leaves U.K. Car Production Flat
Production through February virtually was unchanged from a year ago, up 0.2%. A 33.4% improvement in output for the home market was undercut by a 6.9% decline in builds for the export sector.
U.K. car production in February slipped 0.7% year-on-year to 137,458 units as European demand continued to shrink but domestic orders jumped.
The Society of Motor Manufacturers and Traders says this left car output stable for the month and strong investment intentions suggest production will rise over the full year and beyond.
Car production for the U.K. market gained 39.7% to 35,251 units compared with like-2012, while the export build fell 9.8% to 102,207.
After the first two months of the year, U.K. production virtually was unchanged from a year ago, up 0.2% to 266,507 units. Output for the domestic market improved 33.4% to 62,162, while the build for the export sector dipped 6.9% to 204,345.
SMMT interim CEO Mike Baunton says after an outstanding rise a year ago, it’s pleasing to see car production remain robust.
“The U.K.’s commercial-vehicle makers continue to feel pressures of weak economic conditions in wider Europe, with engines also following suit,” he says in a statement. “However, independent forecasters expect to see more sustained levels through the rest of the year ahead.”
Baunton referenced a market in which output dropped 17.1% in February to 8,005 units on weak export volumes.
The result left output during the first two months of the year down 18.8% to 15,827 units, as February’s 2.6% year-on-year growth in the home market to 4,165 units was eradicated by a 31.4% tumble in export volumes.
“Manufacturing of commercial vehicles in the U.K. continues to struggle with the fall in European demand,” Baunton says.
SMMT says engine production in the country continued to reflect weak export demand. U.K. manufacturers build some 2.5 million gasoline and diesel engines a year with more than 60% exported, mostly to mainland Europe.
Production in February fell 5% to 220,466 units, with output for the U.K. market down 1.8% to 83,822 units and off 6.9% to 136,644 earmarked for export.
This left the 2-month total down 5.1% to 440,223 units, with output for the home market showing a 0.4% uptick to 169,833 units and builds for export declining 8.2% to 270,390.
“Significant investment in existing and new plants…should help secure and expand engine production in the U.K.,” SMMT says.
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