UK vehicle production got off to a ‘disappointing’ start to the year with volumes down -13.6% in January.
Factories produced 67,415 vehicles, comprising 65,249 cars and 2,166 commercial vehicles (CVs), the former declining by -8.2% compared with January last year, while CV output fell for the 10th consecutive month, down -68.6% following a major plant restructuring.
The loss was driven by a decline in exports across both cars and CVs, with shipments down -10.1% and -75.0% respectively, amid weak demand in key global markets, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT).
Production for overseas buyers still accounted for the majority (77.8%) of vehicle output, with the EU remaining the largest global market for UK plants, taking 62.5% of car exports and 94.0% of CV shipments.
The US remained the second largest importer of UK-built cars with a 14.1% share, followed by Japan (2.7%), China (2.5%) and Turkey (2.4%). While car exports to the EU rose 7.8%, reinforcing the need for free and fair trade and market access across the Channel, shipments to all other top five markets fell by double digits.
CV production for the UK also fell steeply, by -58.4%, whereas car output for the domestic market was broadly flat, down -0.6% to 13,880 units with just 84 fewer vehicles turned out. Production of battery electric (BEV), plug-in hybrid (PHEV) and hybrid (HEV) cars, meanwhile, fell -10.6% to 26,854 units, although they still accounted for 41.2% of car output.
Mike Hawes, SMMT Chief Executive, said: “Weak exports to markets beyond Europe amid soft demand delivered a disappointing start to the year for UK vehicle manufacturing.”
