CV production drops by a third

Commercial vehicle production fell 31.2 per cent in July – the fourth successive month of decline, according to the Society of Motor Manufacturers and Traders.

Just over 5,000 commercial vehicles came off production lines last month, some 2,290 fewer units than in the same month in 2018, with the fall driven primarily by the reduction in exports.

In the year to date, despite a 6.5 per cent increase in production for domestic buyers, overseas demand has driven output and, with orders down by nearly 10,000 units, it means year-on-year overall volumes have fallen -18.1 per cent since January.

SMMT chief executive Mike Hawes said: “The relatively small volumes involved in UK commercial vehicle manufacturing make it particularly susceptible to model changes and fluctuating fleet cycles. However, for the sector to take advantage of the currently buoyant domestic van market and grow overseas orders, which still account for the majority of production, we need to maintain competitive trading conditions to encourage future investment.”