Figures show strong growth in UK automotive production
Fri 24 January 2014
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The latest figures published by the Society of Motor Manufacturers and Traders (SMMT) show that UK car and engine production grew strongly in 2013, hitting a six year high.
UK car production was up 3.1% exceeding 1.5 million units. The SMMT reports that industry analysts have predicted that output will reach record levels of around two million units by 2017.
The latest figures show that the UK still exports approximately 80% of cars produced and whilst the European market has struggled with tough economic conditions, overall export volumes have been helped by strong growth in demand for UK-built cars in other locations.
Commenting on the announcement, Business Secretary Vince Cable said: “Today’s figures are another sign that the British car industry is going from strength to strength – with one vehicle rolling off a production line somewhere in the UK every 20 seconds.....It also highlights the benefits of industry and government working together and we want to continue this partnership through a long-term strategy.”
Phil Harrold, automotive partner at PwC, commented: “In contrast to the premium vehicles being exported, the UK and European market largely demands compact vehicles. Toyota, Honda, Nissan and Vauxhall are the main players here. European demand is depressed and shows no sign of increasing over the next two years. The exception to this is manufacturers developing high-end technical niche products, for example the Toyota Auris. Future success for the UK and European markets lies in technology and materials innovation, for example aluminium and hybrid vehicles.”
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