UK sees biggest monthly sales increase in October image

Car output in October rose 17.4% to 160,854 units, the largest monthly increase so far this year, according to the SMMT – Society of Motor Manufacturers and Traders.

Manufacturing for home market was up significantly at 52.4%, while export growth strong at 11.4% and 1,286,287 cars were produced in year-to-date, a rise of 5.4% over 2012.

Around 50% of UK car exports go to Europe – after months of decline, EU demand shows signs of improving, now recording two consecutive months of growth.

“UK car manufacturing for the home market increased strongly in October raising the year’s performance 26.6% ahead of 2012,” said Mike Hawes, SMMT Chief Executive. “More than 15 brands build 50-plus models of car across the UK with volume and niche offerings providing a wealth of choice for our home and export markets. With European demand showing early signs of recovery, we expect production to continue positively in the coming months.”

Unfortunately, the downward trend in commercial vehicle production continued in October, given continually low levels of demand across the EU combined with structural and model changes in the UK and even though some areas show good news, like UK bus and truck manufacturing growing in the month, the domestic CV manufacturing outlook remains negative for the rest of the year.