Passenger car production in the United Kingdom grew by 1.2% year-on-year (y/y) during January, according to the latest data published by the Society of Motor Manufacturers and Traders (SMMT). Output during the month increased to 127,550 units. Commercial vehicle manufacturing declined 20.5% y/y to 9,844 units.
Significance: Vehicle production in the United Kingdom has flattened this month but is still not performing badly compared to others, and despite the pressures facing one of the country's largest export partners, Europe. However, while exports have fallen recently, domestic demand has gone some way towards offsetting this with a 26.1% y/y improvement in sales of locally produced cars. Despite Ford's recent decision to kill off production of its Transit in the country which will hamper the positive development of commercial vehicle production in the UK, the long-term prospects for the sector suggest that it is in the best shape for many years. Significant investments having been announced by several manufacturers during the past two years, some of the most notable having been from Nissan and BMW, which have both unveiled additional investment, alongside Jaguar Land Rover (JLR). IHS Automotive anticipates that 2013 passenger car production in the country will witness a decline of 7.6% y/y rise compared with 2011 to 1.44 million, although growth will return in 2014 but more substantial gains are anticipated during the second half of the decade.
