UK Car Manufacturing in May +2.3%; Boosted By Domestic Demand

        By Ian Walker
        LONDON--U.K. car manufacturing rose 2.3% in May, boosted by domestic demand, although the total to date is up just 0.8% after declines in every month except March, the U.K. Society of Motor Manufacturers and Traders said.
        A total of 119,338 cars were produced in May, compared with 116,655 in May 2014, taking the number to date to 649,843, compared with 654,895 a year earlier.
        Of those cars manufactured in May, 24,792 were for British customers, up 13% from 21,888 last May, while the number of cars exported fell 0.2% to 95,546. For the year to date 160,237 cars were manufactured for the home market, while those exported fell 5.8% to 489,606.
        The industry is gearing itself up for a more prolonged period of growth in the mid- to long-term, as multi-billion-pound investments will see new models hitting the production line, the SMMT said. Among the global manufacturers investing in U.K. production are Bentley, Honda, Jaguar Land Rover and MINI--all with new products due to roll off production lines in the next few months.
        "We have seen a steady performance in U.K. car manufacturing this year with volumes bolstered by a strong home market, while recovery in key European markets is helping to restore export production levels," SMMT Chief Executive Mike Hawes said.
        "Long-term, the picture is promising: 'Built in Britain' is still in high demand all over the world, with buyers attracted not only by iconic British brands but also by the high quality of our engineering. With a significant number of new models due to start production in the coming months, we anticipate a strong, sustained upturn in output volumes in the years ahead," Mr. Hawes added.
        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.
        Write to Ian Walker at ian.walker@wsj.com
        (END) Dow Jones Newswires

        June 24, 2015 19:01 ET (23:01 GMT)

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