UK commercial vehicle manufacturing output declines in July

According to data released today by the Society of Motor Manufacturers and Traders (SMMT), British commercial vehicle (CV) production declined by -31.2% in July, the fourth consecutive month of negative growth. Production for the domestic and foreign markets fell by -16.8% and -39.8%, respectively, as model changes continued to affect factory production.

In 2018, more than 5,000 commercial vehicles closed production lines last month, driven mainly by a decrease in exports, some 2,290 fewer units than in the same month in 2018. To date, despite a 6.5% increase in production for domestic buyers, overseas demand has accelerated production and with orders of about 10,000 units, that means a year-over-year overall since January. Versions declined by 18.1%.

Mike Homs, SMMT CEO said,

“The relatively small volumes involved in UK commercial vehicle manufacturing make it particularly susceptible to model changes and unstable fleet cycles.

However, for the region to take advantage of the current rapid domestic van market and growing overseas orders, which still account for the majority of production, we need to maintain competitive trading conditions to encourage future investment the wanted. "