U.K. Output Down in May, But Industry Remains Optimistic

U.K. new-car production fell 9.8% in May to 116,655 units as a result of days lost to spring shutdown at some plants, but the year-to-date output remained positive, rising 3.5% to 654,895 units.

The Society of Motor Manufacturers and Traders says the demand for new cars in the European Union continued to grow, with May marking nine consecutive monthly increases.

SMMT CEO Mike Hawes is not fazed by the May drop.

“The prospects for the coming months and years, however, are still bright; new U.K.-built models will benefit from growing demand across Europe, while significant investments in U.K. manufacturing operations are moving closer to production readiness,” he says in a statement.

The build for the home market in May fell 8.8% to 21,889 units, for a 5-month total down 0.9% to 135,323 units.

On the export side May’s output fell 10.0% to 94,767 units, leaving the year-to-date total up 4.7% to 519,572.

SMMT says it expects commercial-vehicle production to stabilize in the late summer after it fell 32.2% in May to 5,127 units for a 5-month total down 22.8% to 30,917.

“U.K. commercial-vehicle output continued to feel the effects of last year’s production restructuring,” Hawes says.

“There is light at the end of the tunnel, however, as we look forward to the end of this impact in late summer. The next few months will also see new models rolling off U.K. assembly lines, which will help boost production numbers.”

The CV build for the home front slid 19.8% in May to 2,927 units, pushing the year-to-date total down 24.1% to 15,349.

Export-market production dived 43.8% to just 2,190 units, leaving the 5-month total off 21.4% to 15,568.

SMMT says engine output fell 4.2% in May to 213,603 units, leaving the year-to-date total down 1.1% to 1,082,651.

Engines built for export rose 9.7% for the month to 140,407 units for a 5-month total up 6.7% to 705,657.

Demand from the home market fell 23.0% to 73,196 units in May. Year-to-date the domestic build is down 13.0% to 376,994.

The SMMT says with engine exports continuing to grow, they now account for 65.2% of the year-to-date output.

“With new production facilities gearing up for launch and a growing European market, the future is positive for the U.K.’s engine manufacturing industry,” Hawes says.