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UK car manufacturing sees strongest growth for 16 years

by International Commercial Investment on October 23, 2014

Source: The Guardian

UK car manufacturing is in the midst of its strongest run of growth in 16 years, despite a drop in production in September.

More than 1.13m cars rolled off production lines in British factories in the first nine months of the year. This is up 0.6% on a year earlier and the best performance over the period since 2008, according to the Society of Motor Manufacturers and Traders (SMMT).

However, car manufacturing fell 2.8% in September compared with a year earlier, with 137,068 cars made. The number was dragged down by cars built for export, which were down 8.1% at 102,947. Cars made for UK buyers however were up 17.7% at 34,121 amid thriving domestic demand for new cars.

The SMMT said the drop in output in September was down to planned re-tooling of production lines as factories prepared for model changes, but the fall in exports also coincides with a renewed slowdown in the eurozone, the UK’s main trading partner.

“The continued investment by the sector into new models means the September figures took a slight dip as some plants underwent re-tooling but it is these same new models which will help increase production volumes in the future,” said Mike Hawes, the SMMT’s chief executive.

International Commercial InvestmentUK car manufacturing sees strongest growth for 16 years