In September, the production of commercial vehicles in the UK witnessed a notable increase, rebounding after the August slowdown.
- September recorded a significant boost in vehicle output, marking a rise by more than a quarter compared to previous months.
- Exports remained a significant driver of production, with the EU accounting for an overwhelming majority of shipments.
- UK market also experienced growth, though to a lesser extent than export markets.
- The automotive sector continues its critical role as a substantial contributor to the UK economy.
The production of commercial vehicles in the United Kingdom saw a remarkable rise in September, with 14,643 units, including vans, buses, trucks, coaches, and taxis, rolling off production lines. This increase marks a recovery from the traditional low production volume during the August summer shutdown.
Export markets dominated the output figures, with 63.3% of all vehicles produced designated for export. In September alone, exports surged by 37.2%, reaching 9,276 units. Notably, the European Union remained the primary export destination, receiving 98.7% of these shipments, highlighting the importance of maintaining seamless trade relations across the Channel.
Domestically, there was also a measurable increase, with production for UK buyers rising by 10.1%, totalling 5,367 units. Year-to-date figures indicate that UK commercial vehicle production reached 93,447 units, marking the most successful first nine months since 2008. Supply chain issues present in the second quarter had eased by the third quarter, accommodating a growth in production.
Exports have been a critical factor in driving overall growth, rising by 15.1%, which more than compensated for a 2.5% decrease in the domestic market output. This trend reinforces the importance of international demand in the sector’s health.
The automotive sector not only remains the UK’s largest exporter of manufactured goods but has also increased its share of total goods exports to 13.9% in the first half of the year. In the year leading to June, the sector’s total trade value was £114 billion, comprising £46.8 billion in exports and £67.2 billion in imports, underscoring its significant role in economic growth.
Concerns have been raised by Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), regarding recent government budget measures aimed at the automotive industry. While there has been praise for the government’s ongoing investment and transformation funding for the sector, the budget’s provision is seen as insufficient to maintain global competitiveness, particularly with the added pressure of increased National Insurance contributions on the supply chain.
Hawes emphasises the pressing need for a review of market and regulatory conditions, particularly in relation to the ambitious electric vehicle (EV) targets. The current measures, including the extension of the Plug-in Van Grant, fall short of what is needed to stimulate growth in this segment, putting future targets and industry investment at risk.
September’s figures highlight a robust recovery for UK commercial vehicle production, with exports playing a crucial role.
