🕒 Article read time: 3 minutes
Steep falls in commercial vehicle production
The production of commercial vehicles fell by a staggering 11.5% in August, with fewer than 5,000 vans, trucks, buses and taxis rolling off production lines, according to figures recently released by the Society of Motor Manufacturers and Traders (SMMT).
This means that there were 641 fewer vehicles being manufactured compared to August 2019.
DEPRESSED DEMAND
Demand is stubbornly depressed, as the industry struggles to make up a demand shortfall of 20%. However, there are two sides to the story as production for the UK market grew by 22.3%, while demand from Europe, the Americas and Asia fell, decreasing exports by 29.6% and bringing the overall share of vehicles built for overseas customers down to 51.8%.
TIGHTENING RESTRICTIONS
With restrictions tightening both in the UK and overseas during the second wave of the pandemic, UK commercial vehicle production is yet to make up a shortfall of more than 9,000 units, with year-to-date performance down by 20% year on year between January and August.
“Commercial vehicle manufacturers are facing multiple challenges,” said SMMT Chief Executive Mike Hawes, “as a second wave of coronavirus results in tighter restrictions on their own operations and those of their customers.”
TOUGH WINTER AHEAD
Hawes said that while SMMT welcomes the recent announcement by the Chancellor of a job support scheme starting in November, the industry still needs immediate measures for suffering bus and coach manufacturers and their supply chains as it heads into a difficult winter.
“More broadly,” he said, “with the looming end to the Brexit transition period, the sector faces the prospect of even greater strain on its tentative restart.”
NEW VAN REGISTRATIONS GROW BY 26%
There is brighter news in the light commercial (LCV) market, however. The UK new LCV market grew by more than a quarter (26.4%) in September. More than 50,000 vans, pickups and 4x4s were registered in the month, up more than 10,000 units compared to September 2019.
Hawes said: “September’s numbers indicate some confidence is returning as operators seek flexibility and lower operating costs. However, the context of these figures is important as the headline growth belies a very weak September 2019 and is still short of the rolling average.”
Hawes concluded that with the ticking clock of the end of the Brexit transition period, new restrictions on social distancing and job losses as the furlough scheme comes to an end meant that the final quarter of 2020 holds “myriad challenges for the industry”.
*www.smmt.co.uk/2020/09/commercial-vehicle-production-falls-11-5-in-august/
Published On: 15/10/2020 14:05:17
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