U.K. Car Output Down 2.7%, CVs Off 22.1% in February

U.K. car output fell for a second month, dropping 2.7% in February to 133,730 units and leaving year-to-date production down 1.4% to 262,645.

But Society of Motor Manufacturers and Traders CEO Mike Hawes says car manufacturing in the region has been broadly stable over the first two months, dipping only marginally due to forecast product-cycle changes.

Output for the home car market fell 20.8% in February to 27,913 units, offsetting a 3.5% rise in exports to 105,817. The latest result left year-to-date domestic builds down 14.3% to 53,294 units, with exports up 2.4% to 209,351.

But the SMMT is confident, saying the industry is set for growth in 2014 and beyond as fresh investments are made and new models come to the market.

And as export volumes rise, the SMMT estimates the average car export value has risen more than 70% between 2007 and 2013, exceeding £20,000 ($33,008).

“The significant increase in the value of car exports in recent years reflects the changing profile of the models produced and underlines the sector’s economic importance,” Hawes says in a statement.

SMMT data shows commercial-vehicle manufacturing output fell for an eighth straight month in February, declining 22.1% to 6,235 units and leaving year-to-date volumes down 18.4% to  12,916.

“Early signs of a recovering European market are a glimmer of good news for U.K. CV manufacturers still feeling the effects of subdued demand and industry restructuring,” Hawes says.

“There are still tough months ahead while we work through the pain of the past few years, but if growth in mainland Europe strengthens, there may be light at the end of the tunnel.”

The SMMT says engine manufacturing fell 2.4% year-on-year to 220,466 units in February as plants wait for full-scale vehicle output.

The build for the home front fell 11.9% to 77,421 units for the month, but there is optimism as export assemblies rose 3.9% to 137,778, increasing the offshore share to 64% of output.

After two months, the U.K. engine build was down 4.3% to 421,490 units with the home market dropping 14.6% to 148,437 and export production rising 2.5% to 273,053 units.

The SMMT says U.K. engine manufacturing is on the verge of major growth with Jaguar Land Rover’s Wolverhampton plant set to open in 2015 and Bentley’s Crewe facility to become Volkswagen Group’s W12 engine center next year.