UK commercial vehicle production returned to growth in October following September’s decline, rising 47.1% year on year.
A total of 12,853 vans, buses, trucks, coaches and taxis rolled out of factory gates last month, up 4,113 units on October 2022 and with the best percentage gain of 2023 so far.
The new figures from the Society of Motor Manufacturers and Traders (SMMT) also reveal that it’s October’s best performance since 2008, up 41.4% on 2019’s pre-pandemic figures.
Growth was recorded in both the export and domestic markets; up 47.0% and 47.2% respectively. But exports continued to account for the lion’s share of output, with more than two-thirds (67.5%) of units shipped abroad. And the EU cemented its place yet again as the UK’s largest international market, receiving 96.0% of exports.
Year to date, CV manufacturing is up 15.3% to 98,610 units – an increase of 58.6% on the same period in 2019 and representing the best 10 months since 2011. Exports were up 21.4% to 62,229 units, whilst the home market recorded more modest growth of 6.1% to 36,381 units.
Based on the strength of the market, the latest independent LCV production outlook for 2023 has been revised up to 107,000 units – an increase of 34.2% or 27,293 units year on year and with further growth expected in 2024 as the UK delivers additional full-year production of the latest green vans.
However, tougher Rules of Origin due to come into effect from 1 January 2024 for electric vans could impact this and the SMMT continues to call for urgent resolution to avoid the threat of tariffs that could lead to increased vehicle costs for buyers.
Mike Hawes, chief executive, said: “With just weeks remaining, a resolution is needed urgently, one that helps the sector on both sides of the Channel avoid additional cost and competitiveness challenges.”
