Strong commercial vehicle markets boost UK output
– Robust home market drives growth in UK CV manufacturing, up 43.3% in March.
– Strongest performance in a quarter since Q4 2010, increasing 19.1% to 23,435 units.
– Recovering European market sees export demand rise by 31.0%.
Figures released by the Society of Motor Manufacturers and Traders (SMMT) show an increase in demand for UK-built commercial vehicles. Britain produced 9,648 vans and trucks in March, representing an uplift of 43.3% over last year. In the first quarter of the year, 23,435 commercial vehicles were produced, marking 19.1% growth following reduced output in 2014.
This growth can be attributed to a particularly strong home market and a ramping up of volume production to meet demand for new to market vans. The UK’s CV sector saw a record quarter for registrations with 108,456 van and truck orders fulfilled. This has translated to a 63% upturn in production of UK-built vehicles in March and 37% over the quarter, with light commercial vehicles accounting for more than four fifths of output.
In further evidence of the sector’s return to form, the export market has also posted growth of 31% in March and 3.9% this quarter. This is in part due to a recovering European market, which has seen an 8.8%* increase in registrations so far this year.
Mike Hawes, chief executive, SMMT, said: “The commercial vehicle sector has enjoyed a strong resurgence so far in 2015 after a subdued couple of years. Driving this eadjustment is a home market invigorated by new product, increased consumer and business confidence, as well as an upturn in demand for UK-built vans and trucks across Europe.
“This growth will help return the sector to a stable natural level following major restructuring of the industry in recent years.”
CV manufacturing Mar-14 Mar-15 % Change YTD-14 YTD-15 % Change
Total 6,732 9,648 43.3% 19,678 23,435 19.1%
Home 3,109 5,068 63.0% 9,517 13,041 37.0%
Export 3,495 4,580 31.0% 10,003 10,394 3.9%
% export 52.9% 47.5% 51.2% 44.4%
About SMMT and the UK automotive industry
The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations in the UK. It supports the interests of the UK automotive industry at home and abroad, promoting a united position to government, stakeholders and the media.
The automotive industry is a vital part of the UK economy accounting for more than £64bn turnover and £12bn value added. With more than 160,000 people employed directly in manufacturing and in excess of 770,000 across the wider automotive industry, it accounts for 10% of total UK export of goods and invests £1.9bn each year in automotive R&D. More than 30 manufacturers build in excess of 70 models of vehicle in the UK supported by around 2,500 component providers and some of the world’s most skilled engineers.
