Car, engine, van, lorry and bus making is soaring in Britain.
The falling value of the pound has helped exports because our vehicles have become cheaper to buy abroad and if manufacturers buy more component parts here they will cut import costs, exchange rate charges and make more money.
UK car manufacturing output reached its highest level since 1999 in November, with almost 170,000 vehicles rolling off production lines, according to figures released today by the Society of Motor Manufacturers and Traders.
Year-to-date volumes also achieved a 17-year high, with production in the first 11 months of the year rising to 1,613,495 units – already nearly 56,000 units ahead of year-end 2015.
Production for the home market was particularly strong in November, rising 14.0% to 33,745 units, while exports also saw robust growth, up 12.5%. In the year-to-date, output is up across the board, with domestic demand increasing 4.2% and exports enjoying an uplift of 11.1% to 1,258,909 – beating last year’s record by 2.5%.
UK commercial vehicle manufacturing rose 9.7% in November 2016, according to the latest figures by SMMT. Production for export continues to drive growth, with nearly 75% of the 9,669 CVs built in Britain last month destined for overseas markets.
Overall year-to-date figures remain steady, with a 0.1% increase in volume compared with the same period in 2015, fuelled by a 16.0% uplift in international demand. Almost 51,000 new vans, trucks, buses and coaches have been built for foreign markets so far this year – already surpassing the number exported in the whole of 2015.
It has been a remarkable year for engine production as well. November hit a record with 250,879 built, a 20% rise for the month and over a third were destined for UK models and with December’s to come the total already nudged 2.4 million, nearly 8% up on the same time in 2015. Mike Hawes, SMMT Chief Executive, said, “Made in Britain is a badge coveted by car buyers worldwide, and these latest figures highlight not just that international appeal but the fact that the UK is a globally competitive place to make cars.
He went on, “November’s surge in demand for UK-built engines is good news, and thanks to billions of pounds of recent investment in new plants to serve Britain’s booming vehicle manufacturing sector.
“However, although domestic supply is growing rapidly – up some 70% since records began in 2009 – overseas demand still accounts for more than half of production. If this important sector’s growth is to continue, the right trading conditions must be maintained to keep the whole industry internationally competitive.”