UK cars up, trucks and engines down

UK car production is being driven by demand from Europe, according to the Society of Motor Manufacturers (SMMT).

A total of 142,158 cars were manufactured in the UK in March - a 12 per cent rise on the March 2013 figure, the SMMT noted.

Last month's figure bought the year-so-far production total to nearly 405,000 - a 2.9 per cent increase on the January to March 2013 total.

But commercial vehicle (CV) production dipped 17.7 per cent to 8,027 in March, with production for the home market slumping 27.8 per cent and export production slipping 6.1 per cent.

And while engine output grew 4.5 per cent in March to 229,959 units, the industry finished the first quarter down 1.3 per cent at 651,255.

SMMT chief executive Mike Hawes said: "The 12 per cent growth in UK car production in March 2014 is a significant step forward after a period of product changes at the start to the year.

"After several years in the doldrums, European demand for new cars is now picking up, with growth in the last seven months,” he added.

"This is a welcome boost for the UK’s volume manufacturers for which Europe is the key market. As new models are launched and investments realised, the sector remains on course for all-time record levels of output by 2017," he said.

As to trucks, Hawes said UK figures continue to be swayed by “restructuring of some operations” in 2013 and the “pull-forward” of demand in the heavy commercial sector.

"There are signs of optimism, however, helped by early signs of revival in European demand. This bodes well for the future as new products and investments in the CV sector come into play throughout the year,” he claimed optimistically.

On the engine front, production for export rose 9.5 per cent in the month of March, offsetting the 3.6 per cent home market decline.

Hawes pointed to “expansion ahead for UK engine manufacturing as investments bear fruit and new facilities take shape” without naming names.

Hawes no doubt was referring obliquely to JaguarLandRover’s new facilities at i54, Wolverhampton, which will produce the new Hotfire families of gasoline and diesel engines potentially adding 300,000 or more to the UK engine production scene once it gets motoring.

Engine manufacturing	Mar-13	Mar-14	% Change	YTD-13	YTD-14	% Change
Total	220,032	229,959	4.5%	660,255	651,255	-1.3%
Home	84,449	81,448	-3.6%	258,298	229,691	-11.1%
Export	135,583	148,511	9.5%	401,957	421,564	4.9%
% export	61.6%	64.6%		60.9%	64.7%