U.K. Automakers Downplay August Production Drop

U.K. car production fell 22.1% in August to 91,282 units, but the industry nevertheless foresees a bright future.

Society of Motor Manufacturers and Traders data shows the year-to-date total up 1% to 994,949 units.

CEO Mike Hawes says August typically is the slowest month of the year and some key plants took additional shutdown time compared with last year.

“Volumes are still strong for the year-to-date, however, with the U.K. automotive sector in the midst of a renaissance,” he says in a statement. “Global demand for quality U.K.-built products is at an unprecedented level, with significant investments into U.K. production facilities from government and industry currently being realized.”

The build for the export market fell 25.7% year-on-year in August to 52,737 units, while domestic orders slipped 9.7% to 18,328.

This left the 8-month export total up 1% to 781,177 units and domestic output up 0.9% to  213,772.

In the commercial-vehicle segment, plants taking extra shutdown days to retool for new models saw production dive 43.5% in August to 2,130 units. Export orders tumbled 61.8% to just 901 units, while the home front built was down 13.2% to 1,229.

Year-to-date CV output was down 24.6% to 45,928 units, with the export market off 27.6% to 23,975 and the home build down 21% to 21,952.

Hawes says the CV industry foresees greater stability. “We expect the recent decline to level off in the next few months as newly introduced models reach full production and the rising demand across the EU takes hold.”

U.K. engine production stalled in August, falling 21.8% to 97,406 units. This left year-to-date production down 3.8% to 1,610,756 units.

Export production for the month was off 8.7% to 56,687 units, while U.K. market demand dropped 34.9% to 40,719.

Export builds were up 4.2% year-to-date to 1,033,622 units, but production for the U.K. market was down 15.4% to 577,134.

Hawes says growth is expected in coming months as new investment in U.K. engine production facilities takes hold.