U.K. Car Output Shifts Into High Gear in April

U.K. car production rose 21.3% in April to 133,437 units, the biggest monthly rise since July 2012, as full-scale production of new models boosted output at plants nationwide.

The Society of Motor Manufacturers and Traders says the spring growth improved the year-to-date build 6.9% to 538,240 units.

“The thriving nature of the U.K. car manufacturing industry was evident in April as output grew at its highest rate for almost two years,” SMMT CEO Mike Hawes says in a statement. “New-model introductions are fueling growth, while Europe, which currently accounts for around half of exports, is now seeing an upturn in demand.”

Hawes says the SMMT expects further increases in the coming months.

The industry’s outlook is boosted by a new survey showing record numbers of U.K. small manufacturers are looking to take on staff as recruitment confidence hits a 3-year high.

The Manufacturing Advisory Service says 54% of the firms questioned for the survey are looking to create jobs in the automotive, aerospace and nuclear sectors, up 14% from the same period last year.

The survey of more than 800 small manufacturers reveals a record appetite for investment in new plant and machinery (59%) and in developing new technologies (52%).

“We have seen consistent signs during the last 12 months that firms are ramping up capacity, in order to meet increasing orders and take advantage of work coming back to the U.K.,” MAS Director Steven Barr says in a statement. “This is the clearest signal yet that our manufacturers believe the upturn is sustainable.”

SMMT says the April new-car build for the home market rose 21.3% to 26,930 units, while the export market grew 21.4% to 106,507.

This raised export production up 8.7% in the first four months to 424,805 units, while domestic output showed a 0.8% uptick to 113,435.

Commercial-vehicle production fell 27.3% in April to 6,270 units, as the impact of restructuring continued. SMMT says year-to-date CV volumes were down 20.6% to 25,790 units with reduced output for both the home and export markets.

But it predicts output will stabilize in second half of the year with an upturn in European demand.

“Production of commercial vehicles continues to suffer the effects of restructuring and, for the truck sector, the impact of last year's spike in demand around new Euro-6 (emissions) legislation,” Hawes says. “However, with some investments yet to be realized and eight consecutive months of growth in the European market, the outlook is more encouraging.”

CV production for the home market fell 26.8% in April to 2,895 units, while the export build dropped 28.6% to 3,375.

After four months, CV production for the U.K. was off 25.1% to 12,412 units, while the export build was down 15.9% to 13,378.

In line with the growth in vehicle manufacturing, engine output rose 2.9% in April to 217,599 units, leaving year-to-date volume off just 0.3% at 869,048. Production for the home market fell 11.8% for the month to 73,913 units, but this was more than offset by a 12.6% jump in exports to 143,686.

After four months, domestic output was down 11.2% to 303,798 units, but engines built for export rose 6.7% to 565,250.