Tag Archives: UK car manufacturing

UK new car market reports slower August as more buyers await new 67-plate

car manufacturing


  • New car registrations fall -6.4% in August to 76,433.
  • AFV demand surges 58.3% as more motorists switch on to alternative powertrains.
  • Year-to-date market holds steady, down -2.4%, with 1.64 million cars joining British roads in 2017.

SEE CAR REGISTRATIONS BY BRAND

The UK new car market reported its fifth consecutive month of decline in August, according to figures published today by SMMT. Registrations fell -6.4%, after a record August in 2016.

However, with more than 76,000 new cars registered, the performance still represents the third biggest August in 10 years.1 Year to date, the market remained broadly in line with expectations, down -2.4%, with 1,640,241 new cars joining British roads in the first eight months.

Superminis and small family cars remained the most popular types in August, accounting for more than half (58.3%) of registrations. However, SUVs, larger family cars and executives were the only segments to grow, up 7.9%, 2.2% and 1.1% respectively.

Meanwhile, more people chose to get behind the wheel of an alternatively fuelled vehicle (AFV) than ever before in the month, accounting for a 5.2% share of the market.2 Demand for petrol hybrid and pure electric battery powered cars increased substantially, up 74.9% and 62.5%, while plug-in hybrid registrations rose 38.5%. Conventional petrols grew 3.8% and diesels fell -21.3%.

Mike Hawes, SMMT Chief Executive, said,

August is typically a quiet month for the new car market as consumers and businesses delay purchases until the arrival of the new number plate in September. With the new 67-plate now available and a range of new models in showrooms, we anticipate the continuation of what are historically high levels of demand.

Notes

  1. August 2016: 81,640; August 2015: 79,060; August 2007: 77,649
  2. The previous AFV record market share for August was 3.1% in 2016

Source: SMMT

 

British car manufacturing rebounds in July as new models hit production lines

  • UK car output rises 7.8% in July as manufacturers ramp up production with new models.
  • After seven months of decline in the domestic market, production increases 17.7% ahead of number plate change in September.
  • Year-to-date performance remains strong, with production passing the one million mark and in line with expectations.

British car manufacturing rose 7.8% in July, with 136,397 new units rolling off UK production lines, according to figures released today by SMMT. Major carmakers ramped up production for new and existing models in the month ahead of summer factory shutdowns, which provide an essential period for plant maintenance, upgrades and re-tooling.

Production for the UK bounced back in July, in readiness for the important September market, following seven successive months of decline, rising 17.7% – an increase of 4,490 units – while exports also grew by 5.3%. Cars made for overseas buyers represented nearly 80% of output in the month with 106,525 units shipped abroad, compared with 29,872 which stayed at home.

Year-to-date new car production remains solid and has now passed the one million mark, though showing a slight dip of -1.6% compared with 2016, in line with expectations. Since January, overseas customers have taken delivery of 78.8% of new cars made in Britain, with UK manufacturers now exporting cars to more than 160 different countries around the world.

Mike Hawes, SMMT Chief Executive, said,

UK car production lines stepped up a gear in July, as usual bringing forward some production to help manage demand ahead of September and routine summer factory shutdowns. As the timing and length of these manufacturing pauses can shift each year, market performance comparisons for July and August should always be treated with caution, but as long as the economic conditions at home and abroad stay broadly stable we expect new car production to remain in line with expectations for the rest of 2017.

Source; SMMT

Carmakers call for transitional EU deal

car-manufacturing

 

The government must secure a transitional Brexit deal to protect the future of the UK car industry, a trade group has said.

The Society of Motor Manufacturers and Traders (SMMT) said Britain was highly unlikely to reach a final agreement with the EU by the March 2019 deadline.

That meant carmakers could face a “cliff edge”, whereby tariff-free trade was sharply pulled away.

It warned the industry would suffer without a back-up plan in place.

The EU is by far the UK’s biggest automotive export market, buying more than half of its finished vehicles – four times as many as the next biggest market.

UK car plants also depend heavily on the free movement of components to and from the continent.

The SMMT said any new relationship with the EU would need to address tariff and non-tariff barriers, regulatory and labour issues, “all of which will take time to negotiate”.

“We accept that we are leaving the European Union,” said chief executive Mike Hawes.

“But our biggest fear is that, in two years’ time, we fall off a cliff edge – no deal, outside the single market and customs union and trading on inferior World Trade Organization terms.

“This would undermine our competitiveness and our ability to attract the investment that is critical to future growth.”

He called on the government to seek an interim arrangement, whereby the UK stayed in the single market and customs union until a new relationship was brokered.

UK car manufacturing generated £77.5bn of turnover last year and accounted for 12% of all goods exports, according to the trade group.

It added that almost a million people were employed across the wider automotive industry.

Source: BBC News

UK car manufacturing falls in April, but YTD output remains strongest for 17 years

car-manufacturing


  • Car output falls 18.2% as Easter bank holiday results in fewer manufacturing days.
  • Year-to-date production rises 1.0% to almost 600,000 units – the highest level since 2000.
  • SMMT calls for the newly elected government to prioritise UK Automotive needs to secure future growth.

UK car manufacturing fell in April, according to figures released by SMMT. 122,116 cars were made in the month, a 18.2% decrease on April 2016, as the late Easter bank holiday affected production.

Despite the decline, year-to-date production remains strong with 593,796 cars made so far in 2017 – a 1.0% increase on the same period last year – reaching its highest level for the first four months of the year since 2000.

Demand from overseas buyers continues to drive growth, up 3.5% so far this year and offsetting a fall at home of 7.0%. In total 76.8% of all cars made in the UK since January have been shipped abroad, with the majority going into the EU.

The news comes as SMMT publishes its priorities for the next government following the general election in June. UK Automotive Priorities, Securing the Strength of the UK Automotive Industry 2017 – 2022 sets out what is required to ensure the ongoing success of a crucial sector that supports 814,000 jobs nationwide, one that has a turnover of £71.6 billion every year.

Mike Hawes, SMMT Chief Executive, said,

“Car production fell significantly in April due to the later Easter bank holiday weekend which reduced the number of active production days that month and also due to unplanned production adjustments. Overall, British car manufacturing remains in good health with the production outlook still very positive and significant new models due to go into UK production shortly. To guarantee future growth and investment into our industry and its vital supply chain, however, we need the next government to safeguard the conditions that have made us globally competitive, keeping us open and trading and delivering an ambitious industrial strategy for our sector.”

UK Automotive Priorities 2017- 2022

  1. A globally competitive business environment to support investment, growth and job creation.
  2. A new trading relationship with the EU which safeguards the interests of UK Automotive.
  3. An ambitious industrial strategy delivering for automotive as a strategic sector.
  4. A holistic strategy to support sustainable mobility and ULEV uptake.
  5. Effective policies to ensure the UK secures the benefits of digitalisation.

Download UK Automotive Priorities, Securing the Strength of the UK Automotive Industry 2017 – 2022 here.

Source: SMMT

UK car exports pass the million mark in 2016

car-manufacturing

 

  • UK car manufacturing volumes increase by 0.9% in September with 159,726 vehicles produced.
  • Overall output for first three quarters rises 10.5% as exports grow 12.2% to hit 1,000,642.
  • Overseas demand drives production, up 5.0% to 123,119 units, while home market falls -10.6%.

car-manufacturing-table-september-16

 

UK car manufacturing reported steady growth in September, with production rising by 0.9%, according to figures published today by the Society of Motor Manufacturers and Traders. Exports rose 5.0% to reach 123,119 units, offsetting a -10.6% decline in production for the home market.

Overall year-to-date output increased 10.5% to 1,292,453 units, as production for global markets grew for a 14thconsecutive month. Export demand rose by 12.2% to take volumes past one million in the first three quarters for the first time on record.

Mike Hawes, SMMT Chief Executive, said,

British-built cars are in demand across the world as demonstrated by the double digit growth in exports this year, resulting in more than a million cars produced for international markets. The vast majority of cars manufactured here in the UK are destined for abroad and future growth will depend on securing our international competitiveness and the barrier-free access to major global markets that has enabled UK Automotive to thrive.

 

Car output_rolling year totals June 2016

Source: SMMT

 

UK car production hits 16-year high, as industry urges government to safeguard future

  • Double digit growth for UK car manufacturing in June as output rises 10.4% to 158,641 units.
  • Best half year performance since 2000, with 897,157 cars produced – up 13.0% on 2015.
  • Future growth uncertain, as SMMT survey highlights industry concerns over trade and investment after Brexit vote.

Car Manufacturing table June 16

UK car makers reported their 11th consecutive month of growth in June, according to figures released today by SMMT. Production grew 10.4% to 158,641 units – the highest level for the month since 1998, when volumes reached 172,232.

The performance closes the industry’s best first half for 16 years,1 with 897,157 cars rolling off production lines so far in 2016 – up 13% on the same period last year as billions of pounds of earlier investment in new models came to fruition. Exports drove volumes, with year-to-date demand up 14.9% to 695,139 units, while production for the domestic market also grew 7.1%.

UK Automotive is export-led, with 77.8% of cars built in the UK destined for more than 100 overseas markets, but the majority of which are headed for the rest of the EU. The sector is part of a complex, highly-integrated European and global supply chain, and depends on significant cross border trade in components. While local content of UK-built cars is growing, 59% of vehicle components are imported, predominantly from the continent.

That relationship with our biggest market is now uncertain and, as a survey of SMMT members just published shows, is of significant concern. 57.1% of respondents believe the outcome will have a negative impact on their business, while just 8.3% foresee it being positive. A further quarter (27.7%) are uncertain about the impact at this early stage.2

Respondents, including businesses of all sizes, from component suppliers to vehicle manufacturers and importers, are most concerned about the potential negative impact of tariffs, custom charges or other barriers between the UK and the EU single market (68.4%). They also expressed concern about losing access to EU trade deals (66.4%), being bound by regulations in their prime export market over which they have no say (66.1%) and loss of access to the EU-wide skills market (63.6%).

The UK automotive manufacturing sector has grown dramatically over the past few years and now employs 169,000 people, including many skilled EU nationals recruited to fill vacancies which the local labour force could not meet. The lack of certainty regarding the future status of these workers in the UK was cited frequently as a concern (59.7%) along with the potential for a drop in sales (52.7%) and investment (46.1%), with larger companies showing the most concern about the latter.

Mike Hawes, Chief Executive, SMMT, said, “UK Automotive is globally competitive with overseas demand for British made products increasing, not least in Europe which is by far our largest market. The latest increase in production output, however, is the result of investment decisions made over a number of years, well before the referendum was even a prospect. These decisions were based on many factors but, primarily, on tariff-free access to the single market, economic stability and record levels of productivity from a highly skilled workforce. To ensure the sector’s continued growth, and with it the thousands of jobs it supports, these must be priorities in future negotiations.”

Car output_rolling year totals June 2016Source: SMMT

 

Strong start to the year for UK car manufacturing with best January since 2008

Car manufacturing rolling year graph_Jan 16

  • UK car production grows 8% in January, with 137,552 vehicles built.
  • Strong overseas demand drives output, lifting exports 9.7%.
  • 31,111 cars built for home market, with production for UK buyers up 2.5%.

UK car manufacturing got off to a strong start in 2016 with output in January up 8% compared with the same month last year, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT). 137,552 cars were produced in the month – the best January performance for eight years.

Increased foreign demand for British-built cars saw manufacturing for export grow for the sixth consecutive month with volumes up 9.7%. Meanwhile, production for UK customers grew 2.5% – an indication of the strong state of the domestic market.

Car Manufacturing table

The performance follows a record year for exports in 2015, with total car production reaching 1.6 million – the highest in a decade.

Mike Hawes, SMMT Chief Executive, said, “January’s figures mark an encouraging start to the year for the UK car industry, following an impressive 2015. We expect output to continue growing in the coming years as the industry benefits from continuing investment, but much will depend on global economic and political conditions and consumer confidence.”

Source: SMMT

UK car manufacturing hits six-year high

Car production rose 3.1% in 2013 to surpass 1.5 million units – the highest volume since 2007.

  • Industry analysts predict output to reach record levels of around two million units by 2017.
  • UK could become the third largest car manufacturer in Europe.

Mike Hawes, SMMT Chief Executive, said, “2013 demonstrated the value of the UK’s diverse car manufacturing industry, as surging home demand and robust exports outside Europe saw output grow 3.1% to over 1.5 million units. UK automotive investment announcements exceeded £2.5 billion in 2013, reinforcing industry analysts’ suggestions that the UK could break all-time car output records within the next four years.”


UK car manufacturing (selected years with AutoAnalysis forecasts 2014-2017)

Note: 1972 is currently the record year for car output (1.92 million cars)
Manufacturing graph 1

Business Secretary Vince Cable said, “Today’s figures are another sign that the British car industry is going from strength to strength – with one vehicle rolling off a production line somewhere in the UK every 20 seconds.

“Our success lies in the appetite from countries around the world for British cars. Around 80% of the 1.5 million cars we produced last year were exported – a testament to the diverse, high quality of British manufacturing.

“It also highlights the benefits of industry and government working together and we want to continue this partnership through a long-term strategy. This will give businesses the confidence to invest, speed up development on vehicles of the future and keep the UK as a world leader in cars. Our investment of £1bn jointly with industry will help do this, while also delivering jobs and driving growth.”

 

Dec 13 Car graph


UK car exports – to EU and other destinations, 2009-2013 (*2013 is Q1-3 only)

Manufacturing graph 2

 

Since 2009, the variety of cars produced in the UK has been underlined by a marked change in export destinations.

While the European market has struggled with tough economic conditions, overall export volumes have been bolstered by strong growth in demand for UK-built cars in other locations.


Top five non-EU export destinations, 2009-2013 (*2013 is Q1-3 only)

Manufacturing graph 3

China’s share of exports has grown rapidly over recent years, and the country now looks set to become the largest non-EU market for UK-built cars.

Take-up in the United States remained strong last year, and while Russia has seen volumes fall since 2012, it is now firmly established as a key export destination.

Source: SMMT

Positive growth for UK Car Manufacturing in October

Domestic demand supports biggest monthly increase in 2013 UK car manufacturing

Posted at 07:16 on 21 November 2013.

  • Car output in October rose 17.4% to 160,854 units, the largest monthly increase so far this year.
  • 1,286,287 cars produced in year-to-date, a rise of 5.4%.
  • Manufacturing for home market up significantly at 52.4%, while export growth strong at 11.4%.
  • Around 50% of UK car exports go to Europe – after months of decline, EU demand shows signs of improving, now recording two consecutive months of growth.

“UK car manufacturing for the home market increased strongly in October raising the year’s performance 26.6% ahead of 2012,” said Mike Hawes, SMMT Chief Executive. “More than 15 brands build 50-plus models of car across the UK with volume and niche offerings providing a wealth of choice for our home and export markets. With European demand showing early signs of recovery, we expect production to continue positively in the coming months.”

Oct 13 Car chart2

Oct 13 Car 2

Oct 13 Car chart 3

Source: SMMT