Car production in UK hits highest August level for 14 years

According to the Society of Motor Manufacturers and Traders, car manufacturing in the UK hit 14 year high in August.

The car industry’s mouthpiece, the Society of Motor Manufacturers and Traders (SMMT), has said that exports are driving growth in production, seeing production levels rise 9.1% in the month of August compared to the previous year.

According to the trade body, a total of 109,004 were produced last month, with an increase in investment in the UK car plants, leading to a demand at home and overseas.

A 10.2% increase in vehicle exports signals a boost from the collapse in the pound since the referendum result, with oversea buyers purchasing UK-produced goods for less money.

The SMMT said the total number of cars built for sale abroad was 13.3% up in the year to date.

There was also a 6.2% rise in the number of cars for the UK market.

Chief Executive of SMMT, Mike Hawes said: “August’s strong performance is good news for car makers and welcome news for the UK economy, which depends on this thriving sector for an increasing share of UK exports.

“British car producers are exporting a diverse range of high quality, attractive new models that are in demand across the world thanks to multi-billion pound investments made in UK plants over the past few years.

“Future success depends on continued investment in plant and products, and that in turn depends on the UK maintaining internationally competitive business and trading conditions.”

The most recent economic data suggests the following the wobble in July, which was caused by the shock caused by the referendum result, the UK is not on track to avoid recession.

 

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