UK Auto Production Down in May on Low European Auto Sales image

UK auto production dropped in May, due to sluggish sales in Europe, but output remained high due to increased demand at home and in markets outside Europe.

In May, UK production dropped 8.4%, according to the Society of Motor Manufacturers and Traders, after an increase of 17% in April. Still, output was kept at high levels thanks to strong demand for vehicles built in the UK, such as JLR’s Evoque and BMW’s Mini, in markets such as China. UK automakers are confident that output might hit 2 million vehicles in the following five years.

From the beginning of the year production reached 630,000 vehicles, a decrease of 0.6% compared with the same period last year. For the past 15 months sales in the UK posted increases and Nissan and JLR have continued to invest in their British plants.

“Production levels are holding firm for the year so far, testament to the appeal of UK-built products around the world and significant growth in volumes built for the home market,” said Mike Baunton, interim chief executive of SMMT. “While economic challenges abroad will impact on car output in the short term, high-value investment by global automotive companies sets UK industry on course for prosperity in the long term.”