U.K. Sees LV, Engine Production Decline in October

U.K. car manufacturing fell 6.7% in October to 150,060 units, dropping year-to-date volumes 0.3% to 1,282,077.

But the Society of Motor Manufacturers and Traders insists the outlook is still positive, with record production levels expected within the next few years.

About 80% of U.K.-built cars are exported, with the product mix split 50-50 between European Union and non-EU exports.

“The U.K.’s car-manufacturing industry is still in a strong position in spite of the growing uncertainty surrounding the global economy,” SMMT CEO Mike Hawes says in a statement.

“Billions of pounds have been invested into U.K. facilities in the past two years, with several new models starting production this year and more in the pipeline,” he says.

The October build for the home front rose 10.6% to 33,895 units, but this gain was swamped by the much bigger export market, which fell 10.8% to 115,165.

With 10 months of the year under its belt, production for the domestic market was up 3.8% to 281,788 units, while the export book slipped 1.4% to 1,000,289.

Commercial-vehicle production fell 8.9% in October to 7,235 units, but it was the smallest monthly drop since June 2013.

Production for the U.K. market increased 14.6% in the month to 4,372 units, but exports tumbled 30.6% to 2,863.

“The heavy fall seen in U.K. commercial-vehicle manufacturing over the past year now is leveling off as the effects of last year’s restructuring only apply to year-to-date figures,” Hawes says.

“With new models now being produced in U.K. plants, production for the home market grew for the first time since June 2013. It remains to be seen if the recent growth in EU demand will continue, but the indications are of greater stability in the months to come.”

Year-to-date CV production fell 23.5% to 57,981 units with the U.K. market declining 18.6% to 28,846 and the export side backtracking 27.9% to 29,135.

The SMMT says engine production in October declined 17.0% to 211,258 units as retooling for new models continued. The result left year-to-date production down 6.4% to 2,033,199 units.

Hawes says the outlook is positive for the long-term, with U.K. engine-building receiving significant recent investment.

The October build for the home market fell 16.3% to 91,603 units with export orders slumping 17.1% to 119,655. After 10 months, production for the U.K. market was off 14.2% to 756,511 units, while the export build dipped 1.1% to 1,276,688.