August turned out to be a bit of a speed bump for British commercial vehicle manufacturing, with output slipping by 10 per cent compared to the same time last year. But before you sound the alarm, let's put things in perspective: it's August, a month when factories typically take a well-earned nap during the "summer shutdown," so fewer vehicles rolling off production lines isn't exactly shocking.
In terms of hard numbers, 6,044 units were produced in UK factories last month, which is only 673 fewer than in August 2022. Not ideal, sure, but the broader picture is still quite rosy. If we zoom out and look at the year so far, production is up a healthy 8.8 per cent compared to pre-pandemic levels in 2019. So, no need to hit the panic button just yet.
The UK may not be cranking out as many commercial vehicles for domestic use, but when it comes to shipping them abroad, we’re still very much in the fast lane. Exports dominated the scene, with a mere 0.2 per cent drop — that’s just seven fewer vehicles compared to last year. The EU continues to be our best customer, with an eye-watering 97.2 per cent of exported units headed to our European neighbours. All told, 59.3 per cent of August’s output was for overseas markets.
UK commercial vehicle production in previous months:
Things weren’t quite as rosy on home soil, though. Production for the UK market took a more noticeable dip, plunging 21.3 per cent to 2,457 units. Perhaps domestic demand is slowing down, or maybe we're just feeling extra generous with our exports. Either way, fewer commercial vehicles are finding homes in the UK right now.
If you’re looking for a silver lining, here it is: the year-to-date figures paint a much sunnier picture. So far in 2024, UK CV plants have produced 78,805 vehicles, marking a 5.8 per cent increase over 2023 and the best performance in 14 years. Yes, you read that right — the best in 14 years, and that’s despite some gnarly supply chain disruptions throughout the year.
Exports, unsurprisingly, are driving this growth. Overseas shipments are up a hefty 12 per cent, with 52,389 units heading abroad. Meanwhile, the domestic market has cooled off a little, with production down by 4.7 per cent to 26,416 units.
It wasn’t just CVs that felt the August slowdown. Numbers from the SMMT show that UK car production also hit a bit of a pothole, falling by 8.4 per cent. That translates to 3,781 fewer cars rolling out of factories last month, bringing the total to 41,271 vehicles. But like their CV cousins, this drop is somewhat expected given the summer hiatus most factories enjoy around this time.
Source: SMMT