UK passenger car production has fallen during July while commercial vehicles (CV) have surged. The Society of Motor Manufacturers and Traders (SMMT) has released data which has shown that passenger car production has declined by 11.2% year on year (y/y) to 132,570 units. This has resulted in its year to date (YTD) starting to decline, with output sliding 1.4% y/y to 923,884 units. However, CVs have recorded a 46.3% y/y leap in production to 9,274 units, which has helped the category's YTD hit 57,967 units, an increase of 32.4% y/y.
Significance: There appears to be little concern about the fall in output this month from the SMMT; the trade association blames this situation on a change in the traditional shutdown period this year during which OEMs undertake plant maintenance, upgrades and retooling. Indeed, its chief executive Mike Hawes said, "The industry remains in a strong position, with more than 910,000 cars produced so far this year and some significant new model introductions due in the autumn." IHS Automotive expects passenger car production in the country to be largely flat this year though, with growth pegged at just 0.5% y/y to almost 1.55 million units, although more substantial gains will be recorded during the next couple of years. CV production has been helped by the recovery of the sector as well as some restructuring that went on among OEMs in this field. The majority of the growth recorded this month has come from demand in the domestic market, which increased by 137.6% y/y to 5,048 units. IHS Automotive anticipates that production of LCVs over 6 tonnes during 2015 will grow by 39% y/y to over 61,000 units, while medium and heavy commercial vehicle (MHCV) production will increase by almost 7% y/y to over 16,000 units. However, it is unlikely that both these categories will reach earlier levels, particularly given the loss of significant levels of LCV manufacturing during the past decade.
