U.K. Car Production Up Despite Weak Europe Market

Total U.K. car builds, including exports, climbed 16.6% in April to 110,033 units without reflecting any recovery in demand from continental Europe.

The Society of Motor Manufacturers and Traders says the home market and economies outside of Europe accounted for the production increase. “Weak European demand remains a concern,” the group says in a statement.

Output in the first four months rose 1.5% to 503,449 units.

SMMT interim CEO Mike Baunton says U.K. car production bounced back in April after a sluggish first quarter that was impacted by an early Easter and continuing uncertainty across Europe.

“Significant growth in output for the home market reflects trends in new-car buying in the U.K., and the focus on growing in new markets beyond Europe has provided further buoyancy to volumes,” he says.

“While demand in Europe overall is very weak, the global appeal of our products, coupled with long-term investment strategies, position the U.K. on a secure path to achieve further growth and jobs in the sector.”

U.K. car production surged 66.1% in April to 22,278 units, while export builds rose 8.4% to 87,755 units. This pushed year-to-date output for the domestic market up 28.3% to 112,531 and left exports down 4.2% to 390,918.

The SMMT says the rate of decline for commercial-vehicle output slowed in April to 3.3% from prior-year, to 8,623 units. CV output for the domestic market improved 24.5% to 3,897, but export demand tumbled 18.3% to 4,726.

This lowered the 4-month CV total 15.2% to 32,477 units. Although the U.K. market increased 9.1% to 16,563, that was offset by a 31.1% slump in exports compared with year-ago to 15,914.

Baunton says 2013 is proving to be a difficult year for CV manufacturers as they experience weak demand from export markets, particularly Europe.

U.K. engine output rose 9.9% in April to 211,452 units, but was down 2.1% to 871,707 year-to-date.

Production for the domestic market grew 26.5% to 83,837 units, boosting the 4-month total 7.7% to 338,119. Export volumes showed a 1.2% uptick last month to 127,615 units, but were off 7.4% to 533,588 through April.