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UK car manufacturing grows by 16.2 per cent

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Time 8:58 am, September 19, 2013

NNP-NEW_NOTE_PRODUCTION_21CAR production continues to thrive in the UK with manufacturers building 91,282 cars in August – an increase of 12,705 units on the same period in 2012.

Domestic demand fuelled the increase but the rise in exports also contributed. As a result, this is the third month figures have risen, pushing year-to-date volumes up 3.1 per cent to 984,545.

On the other hand, the output of commercial vehicles continued to fall in August, down 5.1 per cent to 3,694 units resulting in a year-to-date fall of 16.6 per cent.


Meanwhile engine manufacturing remained stable during the first eight months of the year, up slightly by 0.3 per cent.

‘UK car manufacturing is continuing to grow with global automotive brands building on UK-based design, R&D and engineering expertise to produce some of the world’s most dynamic, dependable and desirable vehicles,’ said SMMT’s chief executive, Mike Hawes.

‘Despite August typically being one of the year’s quietest months due to summer breaks, the past 12 months has been the most productive since late 2008.’


Commenting on the production figures, head of automotive at KPMG in the UK, John Leech, adds: ‘Soaring UK car production is being fuelled by rising demand from both the UK and the Eurozone. Yet these August 2013 figures may be flattered by the poor results this time last year, when the Greek and Spanish debt crises were gathering momentum.

‘Nevertheless, with UK car sales almost back at pre-recession levels and with demand from Europe having bottomed out, I remain confident UK car production will rise again this year, the fourth year in succession, and I forecast further increases in production in 2014, 2015 and peaking in 2016 at around 1.9 million cars.

‘One notable point, as a result of the UK increasingly making higher priced cars, the forecast trade surplus on cars is projected to be a record GBP 8 billion in 2016.’

 

 

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