According to the SMMT’s latest figures, UK commercial vehicle (CV) production grew 64.4% in June, with a total of 9,549 commercial vehicles produced at British factories.
These numbers mark the highest production volume since 2015 and, when compared with the pre-pandemic rolling 5-year average, show a 32.7% increase.
This increase in production comes at a time when van registrations continue to decline in the UK. However, it is not the UK demand driving this production. Exports of British-built commercial vehicles are up a very impressive 133% year on year. The EU is the biggest destination by far, and 92.5% of all exports are for the EU market. Exports now take up 58.1% of all production, with the other 41.9% being built for the domestic market.
When looking at the yearly numbers, total output for 2022 to date has reached 50,596 vehicles. This is an increase of 47.4% over 2021 and is 16.6% up when compared to the pre-pandemic 5-year average. This puts commercial vehicle output at its highest since 2012.
Mike Hawes, SMMT Chief Executive, said, “The CV sector’s best first half performance in a decade is evidence of its resilience, as manufacturers strive to ensure orders for these vehicles, which are critical to the UK economy, are delivered in a highly challenging economic environment. At the same time, manufacturers are committed to building a growing range of more fuel efficient and zero emission vans, trucks, buses, coaches and taxis, an essential step towards achieving Net Zero, while ensuring society can continue to move. We must protect the global competitiveness of the sector amid these challenges, however, starting with measures to tackle energy costs, so that the UK continues to be among the world’s leading manufacturers for these vital vehicles.”
Manufacturers are pushing hard to try and meet demand, and it is showing in the increased production numbers.
However, due to the issues we have faced in the past few years such as COVID and parts shortages, manufacturers continue to play catch-up on their order boards. Factory orders, if placed today, are still some distance away.
Our advice remains as it has since the supply issues began. Finding your ideal vehicle will continue to be a difficult task until the factory order lead times come down to pre-pandemic levels. It is likely that you will need to compromise and opt for a vehicle that is available now, rather than place an order for something that may not materialise for another 8 to 12 months.
If you aren’t sure, please get in touch. The advisors at Van Ninja will be able to provide the latest information on stock levels and lead times, so you can make an informed decision for your business.
