The UK commercial vehicle sector has witnessed its strongest February performance since 2008, with production figures nearly doubling.
- Despite the overall growth, domestic production witnessed a decline for the second consecutive month.
- Increasing overseas demand has driven the remarkable rise in production, with exports soaring significantly.
- A total of 12,927 vehicles, including vans, trucks, and buses were manufactured during the month.
- Challenges remain as the emphasis shifts towards maintaining this momentum amidst global competition.
In February, UK commercial vehicle production reached unprecedented levels since 2008, almost doubling in output. This significant surge was underscored by the production of 12,927 vehicles, comprising vans, trucks, and buses, as reported by the Society of Motor Manufacturers and Traders (SMMT).
Though the overall production enhanced, the domestic market experienced a downturn for the second month in a row. The output for the domestic market fell by 4.0% to 2,916 units, a decline of merely 123 vehicles compared to previous figures. This contraction hints at potential underlying issues within the domestic demand framework.
Conversely, the exceptional increase was primarily attributed to an impressive rise in overseas demand. Exports climbed by an astounding 188.0% to reach 10,011 units, accounting for 77.4% of the total commercial vehicles produced in the month, with a staggering 97.6% of these units destined for the European Union. This reflects a clear preference and growing reliance on the European market for British-built vehicles.
In the initial months of the year, production has shown robust growth with 24,683 commercial vehicles built in Britain, marking a 56.4% increase compared to the same period last year. This growth is heavily reliant on export performance, which surged by 104.5% to 17,976 units, a rise of 9,184 units year-on-year. While this heralds optimism, the domestic segment saw a reduction of 279 units, culminating in a total of 6,707 vehicles for the local market.
Mike Hawes, the Chief Executive of SMMT, commented on this trend with cautious optimism. He stated, “CV manufacturing has kickstarted the year with two months of impressive growth as robust overseas demand for British-built vans continues.” Nevertheless, he underscores the necessity for the UK to accelerate the production of zero-emission vehicles amidst fierce international competition. Strong economic performances both domestically and internationally will be crucial to sustaining this growth trajectory.
The UK commercial vehicle sector’s future success will depend on balancing strong export growth with domestic market revitalisation.
