First-Half U.K. Car Output Up 3.5%; CVs Down 23%

A robust first half sees U.K. car-manufacturing volume rise 3.5% to 791,314 units after June’s 3.7% increase to 136,419 was driven by a 16.5% jump in production for the home market.

Society of Motor Manufacturers and Traders CEO Mike Hawes says the U.K. industry benefited from a raft of new-model introductions, with more anticipated.

“With several manufacturers having started assembly of new models this year and billions of pounds of investment still to reach production fruition, this is an exciting time for the U.K. automotive sector,” Hawes says in a statement. “However, with this growth comes a need to bolster the domestic supply chain and address major skills shortages, both of which the U.K. industry is committed to addressing.”

First-half production for the home front rose 1.9% to 165,855 units, while the export build was up 4.0% to 625,459.

The June increase saw output for the domestic market up 16.5% to 30,532 units while production for export rose 0.5% to 105,887.

SMMT says commercial-vehicle production continued to be headed in the wrong direction with first-half volumes down 23.0% to 37,460 units.

Hawes says CV output is being “swayed by operational restructuring in 2013 and the pull-forward of demand in the heavy-commercial sector. There are signs of optimism, however, with double-digit growth in European commercial-vehicle registrations, and the emergence of new products and investments across the sector.”

CV production fell 25.4% in June to 6,348 units with the home market down 16.9% to 3,054 and the export segment off 31.8% to 3,294.

This left the 6-month build for the domestic market off 22.6% to 18,598 units and the export book down 23.5%% to 18,862.

Engine output was steady over the first half, down just 0.9% to 1,307,443 units after June production fell 0.4% to 224,792.

Hawes says exports continued to improve in both June and first half-year, accounting for 65% of output in the first six months. “U.K. engine production is expected to improve as new facilities come on line and the European market continues to recover,” he says.

Export production rose 5.7% in June to 141,337 units, while home-market builds fell 9.3% to 83,455.

This left first-half export production up 7.0% to 846,994 units and domestic demand off 12.9% to 460,994.