CV production bounces back in September
Commercial vehicle (CV) manufacturing output grew by more than a quarter (25.9%) in September as 14,643 vans, buses, trucks, coaches and taxis rolled out of UK factories, according to new figures published today by the Society of Motor Manufacturers and Traders (SMMT). Production bounced back to growth following a decline in the traditional low volume ‘summer shutdown’ month of August.
Exports continued to dominate output, accounting for 63.3% of everything made in September, as volumes rose by 37.2% to a total of 9,276 units. In line with the long-term trend, the EU took the bulk of shipments (98.7%), reinforcing the need for smooth trade across the Channel. Production for UK buyers also rose, by 10.1% to 5,367 units.
In the year to date, UK CV plants have produced 93,447 units, a rise of 8.5% on 2023 and the best first nine months since 2008, after supply issues that blighted the second quarter dissipated in Q3.1 Exports have driven overall growth, up 15.1%, more than offsetting a -2.5% decline in output for the domestic market.
Mike Hawes, SMMT chief executive, said, It’s great to see UK plants ramp up CV production after the traditional summer shutdowns. Given it is strong demand from EU markets that drives our output, we must look at ways of improving our relationship with our closest trading partner and, indeed, other global markets. This should be combined with measures to ensure manufacturing competitiveness, so next week’s Budget is the opportunity to outline how government will work with industry to attract the further investment that will underpin growth, jobs and prosperity.
The news comes as fresh SMMT trade data analysis details how the automotive sector remains the UK’s largest exporter of manufactured products, increasing its share of all goods exports to 13.9% in the first half of this year. Moreover, after a record 2023, in the 12 months to June total trade in the sector was worth £114b, including £46.8bn in exports and £67.2bn in imports, demonstrating the massive importance of UK Automotive to economic growth and trade.2
To ensure this hugely important contribution is maintained and, indeed, grows, SMMT is calling for the Autumn Budget to include the reaffirmation of the funding set out last year in the Advanced Manufacturing Plan plus measures to provide competitively priced low carbon energy, attract investment, especially in zero emission supply chains, and support for the reskilling and upskilling of the sector’s workforce. This must be combined with urgent action to support a healthy market, with continuation of the Plug-in Van Grant, and investment in chargepoint infrastructure suited to the specific needs of vans, trucks, buses and coaches.
