January U.K. New-Car Builds Slip 0.3%, CVs Off 14.6%

U.K. new-car production fell 0.3% year-on-year in January to 128,620 units, but the industry expects growth over the full year as newly introduced models move to full-scale production.

The Society of Motor Manufacturers and Traders says the January result was tempered by signs of a European market recovery, boding well for overseas trade.

Production for the home market fell 6.2% to 25,239 units, while export deliveries rose 1.2% to 103,381.

“U.K. car manufacturing made a solid start to 2014, matching the strength of January last year,” SMMT CEO Mike Hawes says in a statement.

“We expect domestic car output to accelerate throughout 2014 as new-model introductions reach full volume. Looking further ahead, we anticipate further growth as investments by some of the world’s biggest automotive brands become reality, creating more jobs and huge opportunities for U.K.-based suppliers.”

The outlook wasn’t as good in the commercial-vehicle segment, as output fell 14.6% across both the home and export markets to 6,681 units.

The CV build for the domestic market dropped 17.9% to 3,445 units, while the export side saw a drop of 10.8% to 3,236.

Still, the SMMT says CV manufacturing figures are expected to stabilize in the second half of the year.

“New Euro 6 engine-emissions legislation came into effect from January this year, a change which invariably results in a lull in U.K. heavy-commercial-vehicle manufacturing and a contributor to January’s 14.6% fall in output,” Hawes says.

“While van production was strong in the month, the 2014 market will, for some months, continue to be affected by the Europe-wide restructuring that occurred last year.”

Engine manufacturing for the month fell 6.1% to 209,291 units. Export demand rose 1.1% to 135,275 units. A sharp 17.4% fall in output for the home market to 61,016 units was linked to newly introduced U.K.-built models still gearing up to full output levels.