UK commercial vehicle output falls -24.8% in 2020 to date despite June growth

UK commercial vehicle production increased 23.9 per cent in June year-on-year, but this was not enough to mitigate first-half contraction in 2020. Figures released today by the Society of Motor Manufacturers and Traders (SMMT) show that 4,144 vans, trucks and buses left production lines last month. The increase appears particularly strong because it follows a particularly weak June 2019, when output fell by more than half due to key model changeovers. Despite this production ramp-up, the first six months of 2020 saw total output decline by -24.8 per cent, on the same period in 2019, due to the pandemic lockdown of global markets.

First half production for the home market decreased by -23.3 per cent, while exports fell -26.0 per cent, with just 14,613 units shipped overseas. Exports accounted for 55.3 per cent of all UK CV manufacturing – with the majority heading for the EU.

Mike Hawes, SMMT chief executive, said: “Although growth in CV manufacturing in June is undoubtedly good news, this does not indicate a return to business as normal. The sector remains almost 9,000 units behind 2019, which will be difficult to catch back given many plants are still operating at a reduced capacity. The government urgently needs to assist this critical sector by building operator confidence domestically and by ensuring competitive conditions are in place to drive long term growth and safeguard jobs. That must start with securing an ambitious and truly tariff-free EU-UK FTA – and quickly.”

(Source: SMMT)