UK Commercial Vehicle Production Boasts Best February Performance Since 2008

In a striking display of resilience and growth, the UK's commercial vehicle (CV) production surged by 98.4% in February, reaching 12,927 units. This remarkable increase marks the fifth consecutive month of growth for the sector, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). The significant upturn in production volume represents the best February performance since 2008, highlighting a robust recovery from the previous year's challenges, including semiconductor shortages that notably impacted manufacturing output.

The surge in production was primarily fueled by a substantial rise in demand for British-built vehicles in international markets. Exports saw an impressive 188.0% increase to 10,011 units, accounting for 77.4% of all CVs manufactured in the month. The European Union was the main destination for these exports, with 97.6% of vehicles headed there. On the other hand, production for the domestic market experienced a slight decline of 4.0%, translating to a decrease of just 123 vehicles to 2,916 units.

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Looking at the year-to-date figures, there has been a 56.4% increase in CV production compared to the first two months of 2023, with a total of 24,683 units built. This growth has been largely driven by a surge in exports, which are up by 104.5% to 17,976 units—an increase of 9,184 units. However, volumes for the home market have seen a slight dip, falling by 279 to 6,707 units.

Mike Hawes, SMMT Chief Executive, commented on the sector's performance, stating, "CV manufacturing has kickstarted the year with two months of impressive growth as robust overseas demand for British-built vans continues." He further highlighted the importance of maintaining this momentum amidst global competition and emphasized accelerating the production of zero-emission vehicles as critical to meeting fast-paced delivery demands.

The SMMT plays a pivotal role in supporting the UK automotive industry's interests both domestically and internationally. It promotes the sector to government entities, stakeholders, and media outlets. The automotive industry is crucial to the UK economy, contributing £78 billion in turnover and £16 billion in value added. With significant investments in R&D and a workforce exceeding 208,000 in manufacturing alone, the industry is a cornerstone of UK's export economy and supports numerous jobs across various sectors.

As the UK CV sector navigates through a period of recovery and growth, its ability to adapt to market demands and technological advancements will be key to sustaining this positive trajectory. With strong performing economies both at home and abroad playing a crucial role in this ambition, the future looks promising for British CV manufacturing.