In an impressive turnaround, the UK’s commercial vehicle (CV) manufacturing sector saw a remarkable 25.9% increase in output in September. Statistics from the Society of Motor Manufacturers and Traders (SMMT) underscore this positive trend, revealing the production of 14,643 vans, buses, trucks, coaches, and taxis. This notable surge comes compared to the previous period and reflects an 8.5% year-on-year growth for the first nine months of 2023, marking the best performance since 2008. The substantial rise in production underscores not just the sector’s resilience but also the significant role of exports, with 63.3% of the output shipped abroad. This export activity grew by a robust 37.2%, contributing to a total of 9,276 vehicles. Domestically, the sector also showed strength with a 10.1% increase, culminating in 5,367 units.
Export-Led Growth and Future Prospects
Year-to-date numbers present a favorable outlook, with UK commercial vehicle plants producing a total of 93,447 units. An impressive 15.1% year-on-year increase in output was driven primarily by exports, effectively compensating for a 2.5% decline in domestic production. Industry analysts point out that the third quarter saw significant improvement as previous supply chain issues that hampered production in the second quarter were resolved. SMMT Chief Executive Mike Hawes credited this surge to strong demand from European Union markets. He stressed the necessity for improved trade relationships and increased competitiveness to sustain this growth. Hawes also called for strategic government actions in the forthcoming Budget to attract more investment. He argued that these measures are crucial for continued growth, job creation, and overall economic well-being. Therefore, while September’s strong performance is encouraging, future progress relies heavily on maintaining strong export ties and enacting supportive government policies, as industry leaders concluded.
