2 minute read - 30th August 2024
Commercial vehicle production sees best July for 16 years
UK commercial vehicle manufacturing output jumped 71.7% in July to reach 15,252 units, reversing four months of decline, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). The increase resulted in the best July performance in 16 years and a 201.8% increase on pre-pandemic July 2019 volumes.
Growth in the month was driven by easing supply chain challenges and ongoing demand from overseas markets – which grew 76.8% to 9,534 units. Exports accounted for 62.5% of all vehicles produced in the month, with the EU taking the lion’s share and nearly all exports (99.1%). The domestic market also recorded double-digit growth, rising by 63.7% to 5,718 units.
The sector’s first monthly uptick since February sees year-to-date commercial vehicle production up by 7.3% on the same period in 2023 to 72,761 units – a healthy gain of 4,971 units and an 81.31% increase on pre-pandemic 2019.
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British commercial vehicle manufacturing jumped 71.7% in July, reversing four months of decline, with 15,252 vehicles leaving UK factories – the best July performance in 16 years / Picture: Stellantis
In comparison, UK car production fell by -14.4% in July, according to the SMMT. Factory lines produced 65,478 vehicles, with the decline in output due predominantly to model changeovers and temporary supply chain challenges.
Despite a -18.6% decline in volume, electrified (battery electric, plug-in hybrid and hybrid) vehicle manufacturing maintained a relatively stable 37.5% share of output, compared with 39.5% in July 2023. Year-to-date, domestic car production remains up 14.8%, while export volumes are down -14.3%. However, total output was still calculated to be worth more than £20bn at factory gate prices – unchanged on the same period last year, demonstrating the high value of UK automotive production.
Mike Hawes, SMMT chief executive, said: “An end to recent supply chain disruption signals a return to growth for the UK’s commercial vehicle sector, and significant growth at that. Sustaining strong global demand for British-built vans, trucks and buses, which are increasingly zero emission, now depends on maintaining favourable trading conditions, creating healthy markets at home and boosting UK competitiveness on the global stage.
“Following significant growth last year, some readjustment in [car production] output was to be expected. Indeed, an ongoing degree of volatility is likely as the industry restructures to transition to zero emission vehicle production. As the billions already committed to new models start to deliver a return, volume growth will resume, providing we seize every opportunity to enhance our global competitiveness. We need investment in skills, healthy markets, cheaper green energy, and fair trade deals that help British-built vehicles reach international customers more easily, all of which should be wrapped in an over-arching industrial strategy that ensures automotive continues to be a key driver of economic growth.”
