UK car output up 14.6% in February, says industry body

(Reuters) - Britain's car production increased by 14.6% year-on-year in February, thanks to strong domestic demand, industry data showed on Thursday.

However, with major manufacturers stemming production of some LNG-running models to focus on new electric variants, production volumes may be more variable in the months ahead, the Society of Motor Manufacturers and Traders (SMMT) said.

A total of 79,907 units rolled out of factory lines in the country in February, compared with 69,707 units a year earlier. This was driven by domestic demand, which climbed 58% to 20,658 units.

Meanwhile, production of electrified vehicles made up more than a third of all output in February to clock 29,038 units, but that was still slightly lower than the 29,590 units produced in January.

Britain and the European Union, which are each other's largest market for exports of EVs, agreed in December to give EV makers until the end of 2026 to comply with local content rules, delaying the imposition of tariffs on EVs traded with the UK.

"The UK industry faces stiff competition, however, as global competitors seek to secure new models and technologies so a commitment to our industrial competitiveness, from all political parties in this likely election year, must be maintained," SMMT Chief Executive Mike Hawes said in a statement.

UK car production is up 17.8% to 162,904 units to date in 2024 - the best start to a year since 2021, SMMT added.

(Reporting by Anchal Rana and Eva Mathews in Bengaluru; Editing by Maju Samuel)