U.K. Production Down in May on Weak Export Demand

U.K. car manufacturing fell 8.4% in May to 129,355 units, as growing demand in the home market was offset by continuing weakness in Continental Europe.

The Society of Motor Manufacturers and Traders says despite the decline, production remained ahead of pre-recession levels.

Volume was flat during the first five months of the year, slipping 0.6% to 632,804 units.

“Despite output falling this month due to weak European demand, U.K. car manufacturing in May was above 2007 levels,” SMMT interim CEO Mike Baunton says in a statement.

“Production levels are holding firm for the year so far, testament to the appeal of U.K.-built products around the world and significant growth in volumes built for the home market.”

Production for domestic consumption rose 14.2% to 24,011 units, but the export sector fell 12.3% to 105,344.

This left the year-to-date build for the home market up a healthy 25.6% to 136,542 units, but the export sector slipped 6.0% to 496,262.

Commercial vehicle manufacturing fell 20.0% in May to 7,560 units, with the domestic market up 1.4% to 3,664 units and exports down 33.2% to 3,896.

After five months, the CV build was down 16.1% to 40,037 units, with the domestic segment up 7.6% to 20,227 and export output off 31.5% to 19,810.

SMMT Commercial Vehicle Manager Nigel Base says production for the home market showed further growth, but could not offset export losses.

“Commercial-vehicle manufacturers continue to battle against weak demand, particularly abroad, with output sliding 20% in May,” Base says.

He says 2013 is going to be a hard year for the country’s CV manufacturers, “but there are pockets of positivity, with some areas of the industry experiencing growth as operators take advantage of the wide range of CVs built in the U.K.”

In line with vehicle manufacturing trends, U.K. engine production fell 8.2% in May to 223,025 units, after a surge in April. That left the year-to-date total down 3.4% at 1,133,091 units.