Commercial vehicle market booming

The UK commercial vehicle market is booming thanks to demand here and in Europe, according to new figures.

The Society of Motor Manufacturers and Traders (SMMT) said on 23 July that almost 50,000 commercial vehicles were produced in the first six months of 2015, 29.9 per cent up on the same period in 2014. June was particularly buoyant, with output 54.5 per cent up on last year.

Growth has been fuelled by demand both in the UK and Europe, with production for the home market rising 31.6 per cent and for exports by 28.3 per cent so far in 2015.

The figures follow SMMT statistics from June that showed that commercial vehicle registrations in May were up by almost 20 per cent on the same month in 2014, totalling 31,922 units. Vans made up the bulk of the registrations (27,960) with the total for the year to date passing 150,000 for the first time on record.

Mike Hawes, SMMT chief executive, said there was across the board demand for British-built vans, trucks and buses.

He added: “It is an indication of just how strongly the commercial vehicle sector has performed in recent months that May’s 17.4 per cent rise in registrations is actually the lowest so far in 2015.

“Truck demand is also up by a staggering 35.9 per cent as fleet operators continue to push for maximum space and efficiency.”

The new figures suggest that the outlook for the haulage sector is a promising one and as business opportunities grow, firms that have access to expert legal advice on key issues – including contracts, terms and conditions of trading, limitation of liability and partnership or joint venture agreements – are likely to give themselves a commercial advantage.

Palmers can assist with all aspects of business law along with corporate finance issues ranging from shareholder agreements and business reorganisations to company sales or acquisitions. For more information, please contact BJ Chong.