UK commercial vehicle production increased by 3.3 per cent in September, according to Society of Motor Manufacturers and Traders (SMMT) data.
British factories built 7,603 vans, trucks, taxis and buses last month – an increase of 240 units driven by production to fulfil several large UK fleet orders.
Output for the domestic and overseas markets grew 9.2 per cent and 0.3 per cent respectively, with exports making up 64.6 per cent of vehicles produced.
Nearly all (95.5 per cent) of the units exported overseas were for the EU market.
Although overall September performance looks positive and in line with previous years, said the SMMT, bus and coach manufacturing continued to suffer from the effects of Covid-19, with volumes down 43.2 per cent to just 63 units.
The body said demand for new buses came to a virtual standstill when the nation entered lockdown in April and, with social distancing measures discouraging public transport usage for most of the year, the fall in demand has caused production to plummet 54.2 per cent to just 756 units so far this year compared with 1,652 in the first nine months of 2019.
Total CV production in the year to date remains at a low level, down 16.8 per cent on last year, with a shortfall of almost 9,000 units in the first three quarters.
Mike Hawes, SMMT chief executive, said: ‘Fluctuating fleet buying cycles mask the underlying impact of the pandemic on commercial vehicles, but it is the bus and coach sector that is bearing the brunt.
‘While manufacturers and their supply chains can flex and adjust, they cannot sustain such low demand for much longer and we urgently need government’s pledge to invest in the buses turned into action.
‘More widely, as time to agree a Brexit deal runs out, we need negotiators to keep up the momentum to agree an FTA that will safeguard the sector’s future competitiveness in 2021 and beyond.’