UK car manufacturing was given a boost in April as output rose by 5.2% to 127,952 units, putting the brakes on a production downturn that has been in motion all year.
Last month UK car plants received a 7.3% increase in demand from the domestic market, while overseas demand was up by 4.7%.
In total, 103,662 cars were built for overseas markets, giving exports an 81% of overall demand – a 0.4% improvement on April 2017.
But despite the U-turn in performance from March’s 13.3% production decline, the UK’s year to date performance remains below that of 2017 by 3.9%.
This is largely thanks to recent dwindling demand from the home market, which at 113,650 units is 10.3% below the same period last year. But exports are also 2.2% down at 454,728 for the year to date, representing 80% of overall demand.
Like the increase in UK new car sales seen in April, Britain’s car manufacturing boost is attributed to the gain of two working days compared with April 2017 (when the Easter Bank Holiday closed plants).
The Society of Motor Traders and Manufacturers said the growth was also linked to the arrival of several new and updated models, while Lloyds Bank commercial UK automotive boss Stuart Apperley the end of a patricianly winter will have encouraged more demand.
Mike Hawes, boss of the SMMT, said “While April’s growth isn’t altogether surprising given the significant decline in output this time last year, it is good to see earlier planned investment into new models delivering results.”
New car sales increase by 9% in Europe
Apperley said that bbusiness secretary Greg Clark recent “supportive comments on diesel were also the “first signs of greater certainty from [the UK] government”, suggesting consumer confidence may have improved – although diesel demand was still down by 24.9% last month.
“Growth in China and the US remains strong, albeit slowing, and is significant for those UK manufacturers targeting the global, not just European, market,” he added.
Hawes reiterated the SMMT’s stance on the government’s ongoing Brexit negotiations, stating that “the ability of UK plants to attract the next wave of new models and drive future growth depends upon maintaining these competitive conditions after Brexit”.
“That’s why it is critical that government acts to safeguard our participation in the EU customs union and single market.”
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