Ferry sailing away

UK commercial vehicle exports drive 11.6% higher in H1 2017

 

Exports of UK-built vans, trucks and buses rose by 11.6% to 27,818 units during the first half of 2017, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).

The industry trade body said that the EU continued to account for 94.7% of all CV exports, although noted decent demand for UK buses from Asian and Australiasian markets.

In total, 63.5% of commercial vehicles built in the UK were exported. This has obvious implications for manufacturers concerned about the detail of how Brexit will be implicated. Mike Hawes, SMMT chief executive, says that the government needs to give due consideration to the needs of the automotive industry:

It’s positive to see such strong growth in CV exports, however, with almost every British-built van and truck destined for Europe, this reiterates the critical need to secure a new trading relationship that ensures this important sector can remain competitive.

The British and European vehicle manufacturing industries are highly integrated, and a beneficial relationship will take time to negotiate. This is why we need government to seek an interim arrangement that will maintain our place within the single market and customs union until this can be achieved.

The reality of modern manufacturing is that parts are made in many countries and brought together on a just-in-time basis at the point of final assembly. As such, it’s clear that the close integration of automotive supply chains across Europe depends on rapid, frictionless movement across multiple borders.

Whether Brexit can deliver this for UK manufacturers remains to be seen. Although I suspect the government will be aware of how much employment and inward investment is tied to automotive manufacturing.

2 thoughts on “UK commercial vehicle exports drive 11.6% higher in H1 2017

  1. Pingback: UK CV manufacturing output falls 26% in September | Van News: The VanRental.co.uk Blog

  2. Pingback: New van sales slump in November – SMMT | Van News: The VanRental.co.uk Blog

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.