U.K. Engine Output Hits 2 Million for First Time

U.K. engine production topped 2 million units year-to-date in the third quarter, the first time the mark has been reached since record-keeping began, the Society of Motor Manufacturers and Traders says.

The milestone was reached as the September build rose 3.9% to 248,463 units. Domestic demand rose 11.1% to 120,905 units, but export orders fell 2.0% to 127,558.

The result left the year-to-date total up 5.0% at 2,001,898 units. Domestic orders were up 5.9% to 895,178 units with export books up 4.3% at 1,105,720.

SMMT CEO Mike Hawes says U.K. engine manufacturing repeatedly has demonstrated the benefits of long-term investment in R&D and plants.

As forecast, U.K. car manufacturing fell 4.1% year-on-year in September to 153,224 units.

Production for export fell 1.1% to 121,803 units, in line with slower growth across European Union markets, while demand from Brexit-nervous U.K. customers dove 14.2% to 31,421.

It left year-to-date car production off 2.2% at 1,259,509 units. The export build fell 0.7% to 988,794 units, while domestic output dropped 7.2% to 270,715.

Hawes says with U.K. car manufacturing falling for a fifth month this year, it’s clear declining consumer and business confidence is affecting domestic demand and hence production volumes.

“Uncertainty regarding the national air-quality plans also didn’t help the domestic market for diesel cars, despite the fact these new vehicles will face no extra charges or restrictions across the U.K.,” he says.

Declining business confidence also depressed U.K. commercial-vehicle output in September.

SMMT data shows the CV build fell 26.0% year-on-year in September to 7,208 units.

Production for the domestic market fell 32.6% to 2,710 units and for export by 21.4% to 4,498.

Year-to-date CV production was off 11.7% at 61,233 units. Builds for export rose 3.6% to 38,022 units, mostly to mainland Europe, while domestic demand dropped 28.9% to 23,211.

Hawes says domestic demand for CVs has taken a hit in recent months, and this is being mirrored in production figures.

“While fluctuating fleet orders are a natural feature of the market, the decline in business confidence, caused by economic and political uncertainty, has resulted in further disruption to manufacturing output,” he says.