U.K. Car Production Sees Biggest Nine-Month Rise in Six Years

LONDON--U.K. car manufacturing has recorded its biggest nine-month rise in six years, boosted by the launch of new models and a recovering market in Europe, despite falling in September because of planned re-tooling for model changes.

In September, 137,068 cars were manufactured, down 2.8% from 141,056 in September 2013, bringing the total for this year to date to 1.13 million, up 0.6% from a year earlier, said the U.K. Society of Motor Manufacturers and Traders on Thursday.

The launch of a number of new models by U.K. manufacturers helped to lift the industry's performance this year, as well as a strong home market and recovering demand in Europe. Premium cars also have done well in emerging markets, especially the Far East, said SMMT.

New models that have started production over the last year in Britain are the new Mini Hatch (three-door and five-door), Honda Civic Tourer, Nissan's new Qashqai and Juke, and the Rolls-Royce Wraith. In addition, the new Land Rover Discovery Sport entered production last week, and the new Jaguar XE also recently started production.

Of those manufactured in September, 102,947 cars were exported, bringing the export total so far this year to 884,124, a fall of 0.1% compared with the corresponding period last year.

"The continued investment by the sector into new models means the September figures took a slight dip as some plants underwent re-tooling, but it is these same new models which will help increase production volumes in the future," SMMT chief executive Mike Hawes said.

Around 75%-80% of total cars produced in the U.K. are exported. About 50% of those are exported to countries within the European Union, with the balance exported elsewhere around the world. China's share of U.K. car exports has been growing in recent years.

Industry experts have forecast that the U.K. will be making more than 2 million cars a year by 2017, higher than the all-time record of 1.92 million in 1972. In 2013, the number of cars manufactured rose 3.1% to 1.51 million units, compared with 1.46 million in 2012, the highest level since 2007, driven by both home demand and exports outside Europe. The SMMT has forecast that U.K. car production will rise to 1.6 million cars in 2014.

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