Tag Archives: british car manufacturing

17 year high for British car manufacturing as global demand hits record levels

  • 7 million cars built in the UK in 2016, an increase of 8.5% and the highest output for 17 years.
  • Exports at record levels for second consecutive year as more than 1.35 million cars shipped worldwide.
  • More than one in two cars exported to Europe, our single biggest trading partner, with demand up 7.5%.
  • Growth driven by multi billion pound investments in previous years – not post Brexit bounce.

UK car production achieved a 17-year high in 2016, according to the latest figures published by SMMT. 1,722,698 vehicles rolled off production lines last year from some 15 manufacturers,1 an 8.5% uplift on total production in 2015 – and the highest output since 1999.2

More cars are now being exported from Britain than ever before, the result of investments made over recent years in world-class production facilities, cutting-edge design and technology and one of Europe’s most highly skilled and productive workforces. Ten brand new car models began production in the UK last year, nine of them from premium brands which has helped make the UK the second biggest producer of premium cars after Germany and the third biggest car producer in Europe.3  Total committed investment annoncements in the automotive sector in 2016 were approximately £1.66 billion across a number of companies. This figure is down from  £2.5 billion in 2015.

Production growth was predominantly driven by overseas demand, with global appetite for British-built cars rising by 10.3% to an all-time high of 1,354,216 – a second consecutive annual record. Around eight out of every 10 cars manufactured in the UK is now exported, bound for one of 160 markets worldwide.

It was continuing economic recovery across Europe, however, that accounted for the bulk of the growth. Exports to the rest of the EU grew 7.5% to 758,680 and accounted for more than half of all UK car exports. Furthermore, Europe supplies the majority of components within UK-built vehicles, underlining the critical importance of tariff and barrier-free trade to future UK automotive production.

Growth was strong across a number of markets, notably the US – the UK’s biggest export destination after the EU – where demand rose by almost half (47.2%) meaning it now accounts for around 14.5% of all UK car exports. Notable uplifts were also seen in Turkey, Japan and Canada whilst China, third on the list of export markets, grew by a more modest 3.1% with 88,610 vehicles exported last year.

Domestic demand for UK built cars also grew last year, up 2.4% in the year, and the UK remains the second largest car market in Europe, again after Germany.4 One in seven new cars registered by UK buyers is now made in Britain, up from one in eight three years ago.

Mike Hawes, SMMT Chief Executive, said,

The tremendous growth in UK production is testament to the global competitiveness of the UK automotive sector. High class engineering, advanced technology and a workforce committed to quality have helped turn around the industry, making the UK among the most productive places in Europe to make cars. Significant investment in new plants and products over the past few years has driven this growth, not a post-Brexit bounce. We want trade deals but they must be the right deals, not rushed deals. Failure to do so could damage UK automotive manufacturing beyond repair.

  1. The UK’s 15 manufacturing plants are owned by a range of independent and multi-national-owned companies: Aston Martin (Gaydon); Bentley (Crewe); Caterham (Dartford); Honda (Swindon); Jaguar Land Rover (Castle Bromwich, Solihull, Halewood); Lotus (Norwich); McLaren (Woking); Mini (Oxford); Morgan (Malvern); Nissan (Sunderland); Rolls Royce (Goodwood); Toyota (Burnaston); Vauxhall (Ellesmere Port).
  2. 1,799,004 cars were produced in the UK in 1999.
  3. New UK models starting production in 2016: Aston Martin DB11; Bentley Bentayga; Jaguar F-Pace; Infiniti Q30; Infiniti QX30; Land Rover Range Rover Evoque Convertible; McLaren 540; McLaren 570; Rolls Royce Dawn; Vauxhall Astra Sports Tourer.
  4. ACEA data for 2016.

Best year in a decade for British car manufacturing as exports reach record high

  • UK car manufacturing reaches 10-year high, growing 3.9% to 1,587,677 vehicles.
  • More cars exported than ever before, up 2.7% on previous year at 1,227,881.
  • Domestic production surges 8.1% to 359,796 to meet increasing demand for British-built cars.
  • EU demand grows 11.3%, with 57.5% of exports destined for the continent.
  • US overtakes China as UK’s largest export destination, with demand up by a quarter.

21 January 2016 British manufacturers made more cars in 2015 than any year since 2005 when 1,595,697 vehicles were produced, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). Production increased 3.9% on 2014, with output at 1,587,677 overtaking pre-recession levels for the first time.1

A record number of cars – representing 77.3% of total production – was for export, with 1,227,881 units leaving the UK, up 2.7% on 2014 levels. Challenges were experienced in some global markets such as China, where demand fell by 37.5%, and Russia, where export volumes declined 69.4%. However, the economic recovery in Europe, the UK’s biggest trading partner, boosted demand for UK-built cars considerably by 11.3% in 2015. The region now accounts for 57.5% of all UK car exports.

IN 2015, 77.3% OF CARS BUILT IN THE UK WERE EXPORTED

SMMT car exports 2015_without text

THE UK EXPORTS TO MORE THAN 100 COUNTRIES WORLDWIDE

Appetite for British-built cars grew significantly in other key and emerging regions, demonstrating the strength and diversity of UK manufacturing and product. In the US, demand rose by more than a quarter (26.5%), making it the UK’s biggest trading destination outside the EU, ahead of China. Meanwhile, notable growth was also seen in Australia, South Korea, Turkey and Japan with volumes up 53.7%, 55.2%, 41.1% and 35.4% respectively.

British consumer and business demand for British-made cars also contributed to last year’s success, with the home car market rising 8.1% on the previous year. One in seven new cars registered in the UK in 2015 was made in Britain.

Mike Hawes, SMMT Chief Executive, said, “Despite export challenges in some key markets such as Russia and China, foreign demand for British-built cars has been strong, reaching record export levels in the past year. Achieving these hard fought for results is down to vital investment in the sector, world class engineering and a committed and skilled UK workforce – one of the most productive in the world.

“Continued growth in an intensely competitive global marketplace is far from guaranteed, however, and depends heavily on global economic conditions and political stability. Europe is our biggest trading partner and the UK’s membership of the European Union is vital for the automotive sector in order to secure future growth and jobs.”

UK CAR MANUFACTURING (millions)

chart_manufacturing15
Chancellor of the Exchequer George Osborne said, “Backing Britain’s car industry has been a priority for this government and today we see the industry going from strength to strength.

“I am hugely encouraged that manufacturing is at a 10-year high and exports ‎are at a record level. All this means jobs and the security of a pay packet for workers and their families.

“Our plans to rebalance the economy mean we have to continue to build on our great manufacturing strengths in the Midlands and the North of England, and work together to ensure that Britain continues to prosper as a global leader in car production.”

The performance of UK automotive is very different compared with UK manufacturing as a whole, according to Office for National Statistics figures, which show  the average manufacturing output to have slowed in recent months.2 Eight brand new car models3 were produced in UK plants in 2015, and with £2.5 billion of fresh investment committed to the sector in 2015, more are set to follow in the coming months.

Table_manufacturing15

 

Source: SMMT