UK commercial vehicle manufacturers produced 13% fewer vehicles in March than they did during the same period last year, according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

Vauxhall’s Luton plant, which builds the Vivaro, continues to be the single largest contributor to UK CV production (image courtesy of SMMT)

Total CV output fell by 13% from 9,648 units in March 2015 to 8,398 units in March this year. The cause of the decline was a slump in UK demand, which fell by 23.7% to 3,868 units.

Export demand was almost unchanged on the same period last year, although this should be seen in context against the exceptional 60%+ surge in export sales seen in March last year.

Figures courtesy of SMMT (www.smmt.co.uk)

These figures also need to be seen in the context of the boom in CV production and the record level of new van registrations in 2015. Commenting on the figures, Mike Hawes, the SMMT’s chief executive, was keen to emphasise that some moderation in volumes this year was almost inevitable:

“Following the substantial boost to volumes seen in 2015, it is unsurprising that March’s production figures were more subdued. However, exports are driving output, with more than half of all the commercial vehicles made in Britain in 2016 produced for overseas buyers. With continued recovery in Europe, we can be optimistic that this trend will continue.”

Although I broadly agree with Mr Hawes’ view, only time will tell whether EU countries such as Spain will see quite such a strong recovery in new van registrations as that seen in the UK.

I also note that Mr Hawes chose to gloss over the decline in UK demand for UK CVs. This suggests to me that the long overdue replacement cycle has now completed and that new registrations may also moderate somewhat.