U.K. Car Production Rises Along With European Demand

U.K. car production rose 12% to 142,158 units in March as European demand for cars strengthened.

The Society of Motor Manufacturers and Traders says the latest result raised the first-quarter output 2.9% to 404,803 units.

Almost 80% of cars manufactured in the U.K. are for global export markets.

SMMT CEO Mike Hawes says in a statement the March growth is a significant step forward after a period of product changes at the start to the year.

“After several years in the doldrums, European demand for new cars is now picking up with growth in the last seven months,” Hawes says. “This is a welcome boost for the U.K.’s volume manufacturers for whom Europe is the key market. As new models are launched and investments realized, the sector remains on course for all-time record levels of output by 2017.”

The build for the export market rose 10.3% in March to 108,947 units, leaving the 3-month total up 5.0% to 318,298.

The home market climbed 18.2% to 33,221 units, narrowing the deficit after three months to 4.1% on 86,505 builds.

SMMT is predicting brighter times ahead for commercial-vehicle output despite a 17.7% tumble in March to 6,604 units. This left first-quarter CV production down 18.2% to 19,520 units and the sector looking for a boost from the CV Show running April 29-May 1 in Birmingham.

Hawes says CV-manufacturing figures continue to be swayed by restructuring of some operations in 2013 and the pull-forward of demand in the heavy-commercial sector.

“There are signs of optimism, however, helped by early signs of revival in European demand,” he says. “This bodes well for the future as new products and investments in the CV sector come into play throughout the year.”

The CV build for the home front fell 27.8% in March to 3,109 units, leaving the 3-month total down 24.9% to 9,517. The export market fared slightly better, falling only 6.1% for the month to 3,495 units to yield a first-quarter result off 10.6% to 10,003.

The SMMT also says engine output grew 4.5% in March to 229,959 units, finishing the first quarter down 1.3% to 651,255. Production for export rose 9.5% in the month to 148,511 units, offsetting a 3.6% decline in the home market to 81,448.

First-quarter engine exports were up 4.9% to 421,564 units, while the domestic market fell 11.1% to 229,691.