U.K.’s July Car-Production Uptick Counters CV Slump

U.K. car production grew 2.8% in July to 132,570 units, raising the year-to-date total 3.4% to 923,884.

Society of Motor Manufacturers and Traders CEO Mike Hawes says the U.K. automotive industry continued its renaissance as evidenced by the region’s 5 million car exports since the beginning of 2010 – the best performance of any decade.

“This is a major milestone and testament to the burgeoning reputation of U.K. automotive excellence and demand for British-made cars,” Hawes says in a statement. “Significantly, U.K. car export values have doubled over the past decade – reflecting the diversity of the products we make and proving the sector’s worth as a global investment opportunity.”

The SMMT says export value also is rising, with the average car exported today worth more than £20,600 ($34,200), compared with £10,200 ($16,900) in 2004.

Production in July for the export market rose 2.9% to 102,981 units, while the domestic build was up 2.4% to 29,589.

After seven months, the export build was ahead 3.8% to 728,440 units and domestic output was up 2.0% to 195,444.

On the downside, commercial-vehicle production fell again in July, with volumes down 25% to 6,338 units, leaving the year-to-date total off 23.3% to 43,798.

Hawes says last month’s drop in CV production continued a trend seen over the past year. “With the effects of the 2013 restructuring still evident, as well as the spike in truck registrations towards the end of last year, this was to be expected,” he says.

“The coming months should provide more optimism, however, with European demand showing sustained improvement.”

CV manufacturing for export fell 31.0% for the month to 4,213 units for a 7-month total down 25.0% to 23,075. The domestic build dropped 9.4% in July to 2,125 units and was down 21.4% year-to-date to 20,723.

The SMMT says engine output fell 10.2% year-on-year to 205,907 units, leaving the 7-month total down 2.3% to 1,513,350.

Engine production for the all-important export market fell 6.2% in July to 129,941 units for a 7-month total off 5.1% to 976,935. However, Hawes says, the long-term outlook is bright for U.K. engine manufacturing as the European Union market recovery continues, and with new facilities set to begin assembly over the coming months.