British car manufacturing output hits peak since 2004

International demand for British-made cars fuelled strong export figures

UK car manufacturers produced a vehicle every 16 seconds in March 2016, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

A total of 159,074 cars built last month represent a 9.8% increase on the previous year, while the quarter total rose by 10.3% on the previous one to 443,581 units, signifying the best Q1 results in 12 years.

The growth has been attributed to mounting international demand for cars bearing a made in Britain mark, as exports surged to 329,653 units from 296,678 in the previous quarter. March also recorded the highest exports with a 14.3% increase on the previous year.

This trend was reflected in engine production as national demand for British engines grew by 24.6% in March, totalling 97,326 units, although the overall output in the month decreased by -1.5% to 227,134, down from 230,634 in 2015.

Foreign demand for British-made engines also fell by an overall -9.3% in the quarter, down to 378,597 from 417,188 in 2015, which could indicate that manufacturers focused more on domestic output. Overall the quarter experienced positive growth with a moderate rise of 3.5% in engine production, amounting to 667,888 units.

Mike Hawes, SMMT chief executive said: “UK car plants were at their busiest for 12 years in March with a vehicle rolling off production lines every 16 seconds thanks to heightened international demand for British-built cars. Much will depend on economic and political conditions in key markets but, with several brand new global models starting production here in the first quarter alone, the prospects for future growth look bright.

“Significant growth in domestic demand for British-built engines in March helped the sector achieve a steady performance for the month, down marginally by -1.5%. New UK facilities this year have catered predominantly for the growing home market, with manufacturing for export down -9.3%.

“However, overseas demand remains strong, with customers in international territories continuing to take the bulk of output, and accounting for 56.7% of overall production.”