Another buoyant month for the UK car industry has seen manufacturers increasing their output by seven per cent to 128,873 units compared to July 2102.
Year-to-date volumes are up 1.9 per cent to 893,263 units and demand at home has risen to 37.5 per cent to support new plate change in September.
‘We are starting to see slight signs of recovery from Europe which will support stronger production levels this year, and UK manufacturers will continue to build and develop innovative, high-quality products that appeal to a global customer base,’ said Mike Baunton, interim chief executive at SMMT.
John Leech, UK head of automotive at KPMG, said, ‘Yet even better news is expected in the second half of 2013, as the decline in European car sales looks finally to have bottomed-out, with registrations of new cars in Europe rising 4.8 per cent in July compared to the same month a year ago.
‘Even austerity hit Spain, Portugal and Greece, where sales are roughly half pre-recession levels, showed double-digit gains. With the Eurozone back out of recession, consumer confidence is starting to improve, giving UK car manufacturers confidence that the second half of 2013 will see greater production volumes than the first.
‘This news will cheer the UK’s car manufacturers currently enjoying their planned summer shutdowns. With strong UK car demand from private buyers continuing to drive UK car production, I expect UK car production will grow by 5 per cent in 2013.
‘This will make it the UK’s fourth consecutive year of growth, contrasting sharply with the rest of Europe, which is likely to endure its sixth straight year of production decline. Our medium-term forecast also remains positive, with UK vehicle production set to grow from about 1.5 million to 1.9 million in 2016, based on manufacturers’ latest plans.’