Car manufacturing makes strong start to 2016

Output in January increease 8% on the same month last year, according to SMMT

UK car manufacturing got off to a strong start in 2016 with output in January up 8% compared with the same month last year, according to figures from the Society of Motor Manufacturers and Traders.

The SMMT’s figures revealed that 137,552 cars were produced in the month – the best January performance for eight years.

Increased foreign demand for British-built cars saw manufacturing for export grow for the sixth consecutive month with volumes up 9.7%. Meanwhile, production for UK customers grew 2.5% – an indication of the strong state of the domestic market.

The performance follows a record year for exports in 2015, with total car production reaching 1.6 million – the highest in a decade.

Mike Hawes, SMMT chief Executive, said: “January’s figures mark an encouraging start to the year for the UK car industry, following an impressive 2015. We expect output to continue growing in the coming years as the industry benefits from continuing investment, but much will depend on global economic and political conditions and consumer confidence.”

Meanwhile, commercial vehicle manufacturing rose by 24.4% in the first month of 2016, with 6,770 new vans, trucks, buses and coaches made in Britain this January.

Foreign demand continued to fuel production, with commercial vehicle output for overseas markets showing substantial growth compared with January 2015.