The UK commercial vehicle manufacturing industry has experienced a significant resurgence, marking its best July in 16 years.
- Manufacturing output surged by 71.7% to 15,252 units, effectively reversing a four-month decline.
- Easing supply chain challenges and strong overseas demand were pivotal in achieving these results.
- Exports played a crucial role, with the EU accounting for the vast majority at 99.1% of exports.
- Domestically, there was a notable growth of 63.7%, evidencing robust internal market demand.
In a remarkable turnaround, the UK’s commercial vehicle manufacturing sector achieved its highest output for July in 16 years, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). The production of commercial vehicles surged by 71.7%, reaching 15,252 units, a figure that signalled a significant recovery after four consecutive months of decline. This increase also represented a 201.8% rise compared to the pre-pandemic output of July 2019.
The revitalisation of the sector can be attributed to an easing of the supply chain constraints that have plagued the industry in recent times. Furthermore, there has been a sustained demand for UK-built vehicles from international markets, particularly from the European Union. The number of units exported rose by 76.8% to 9,534, showcasing the growing preference for British commercial vehicles. Exports accounted for 62.5% of the UK’s total vehicle production for the month, with the EU taking nearly all exports, signifying the block’s paramount importance to the UK’s automotive sector.
Domestic production also made impressive strides, increasing by 63.7% to a total of 5,718 units. This growth underlines the strong demand present within the UK market itself and reflects the broader recovery trajectory of the industry. The positive outcomes of July are indicative of a turning point for the sector.
Delivering his insights on the development, Mike Hawes, Chief Executive of SMMT, stated, “An end to recent supply chain disruption signals a return to growth for the UK’s commercial vehicle sector, and significant growth at that.” He further highlighted the necessity for favourable trade conditions and the importance of bolstering the UK’s competitive stance globally, especially with the increasing shift towards zero-emission vehicles.
The July figures underscore a significant recovery in the UK’s commercial vehicle manufacturing sector, highlighting its resilience and growth potential.
