U.K. Vehicle Production Gears Up for Strong Year

U.K. auto makers enjoyed a steady production start in January, indicative of an anticipated strong year, with builds up 1.2% from year-ago to 129,049 units.

The Society of Motor Manufacturers and Traders says domestic demand boosted output of cars built for the U.K. market 26.1% to 26,938 units, while those made for export fell 3.8% to 102,111.

Independent analysts suggest U.K. car production could grow a third bigger by 2016, approaching 2 million vehicles annually, the SMMT says.

“Output is typically subdued in January as manufacturers extend holiday periods to upgrade plants and retool for new models,” SMMT interim CEO Mike Baunton says in a statement.

“Despite ongoing economic challenges, growing demand for U.K.-built products in emerging global markets coupled with major new investment is paving the way for a positive year for automotive manufacturing.”

However, in a sign of the continuing economic crisis gripping Europe, U.K. commercial-vehicle production tumbled 20.5% in January to 7,822 units. CV output for export slid 37.2% to 3,626, while production for the domestic market edged up 3.2% to 4,196.

“U.K. registrations of trucks were strong through most of 2012 but dropped off in the final quarter, impacting output,” Baunton says. “However, domestic demand for buses and coaches grew significantly through 2012 on the back of government incentives and a wider focus on public transport.”

U.K. engine production dropped 5.1% from year-ago to 219,757 units. The number of engines built for export slipped 9.5% to 133,746, while output for the domestic market rose 2.8% to 86,011.