Financial News: UK Auto Production Surges On Foreign Demand

UK Auto Production Surges On Foreign Demand

(RTTNews) - UK auto production logged a double-digit growth in March but the expansion was not sufficient to offset the first quarter decline, the Society of Motor Manufacturers and Traders, or SMMT, said Friday.

Production of cars and commercial vehicles advanced 17.1 percent year-on-year in March. Production for home market climbed 4.7 percent and that for foreign market surged 23.4 percent.

However, overall auto production declined 6.3 percent from the last year. Production for domestic market plunged 16.3 percent and that for exports eased 2.5 percent.

Car production slid 3.2 percent and commercial vehicle output decreased 27.1 percent in the first quarter.

The lobby observed that production of cars, vans, trucks, taxis, buses and coaches increased in comparison with a weak March last year, when the earlier Easter break reduced working days and significant model changeovers began to impact output.

In March, car output grew for the first time in a year on robust foreign demand. Car production increased 18.2 percent from a year ago.

The increase was driven by the 30.6 percent expansion in export demand. On the other hand, car production for domestic market was down 6.1 percent.

Data showed that the EU continued to be the largest destination for UK car exports that accounted for 57.2 percent of all shipments. Ahead of the introduction of new tariffs, the US remained the second largest export market, comprising 15.0 percent of car exports. This was followed by China, Turkey and Japan.

"With the last quarter showing demand for British-built cars rising overseas, navigating the new era of trade uncertainty is now the major challenge," SMMT Chief Executive Mike Hawes said.

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