Tag Archives: SMMT

UK new car market achieves record 2.69 million registrations in 2016 with fifth year of growth

car-manufacturing


  • Highest ever number of new cars demanded by UK customers, with 2,692,786 registered in 2016, up 2.3% on previous year.
  • Wide choice of new car models and affordable finance deals drives market to new high with fifth consecutive year of growth.
  • December only the second month of negative growth in 2016, as registrations dip -1.1% to 178,022 units.

The UK new car market achieved another record year in 2016, with annual registrations climbing for the fifth year in a row to almost 2.7 million, according to figures published today by SMMT. The market has experienced uplifts in 10 out of the last 12 months, albeit finishing with a December down slightly by -1.1% – with 178,022 new cars registered in the month.

Buyers were attracted by a range of new car models and attractive finance deals, pushing registrations up to 2,692,786 in 2016 – up 2.3% on the previous year and broadly in line with expectations. The UK new car market is one of the most diverse in the world, with some 44 brands offering nearly 400 different model types – and 2017 looks set to be another competitive year with almost 70 new launches already planned over the next 12 months.

Fleets were responsible for most of the growth, with demand growing to a record 1.38 million units. The private market remains at a historically high level, with more than 1.2 million private buyers registering a new car in 2016, although demand did fall over the latter three quarters. The competitive range of affordable finance is a crucial factor driving private demand as consumers are able to take advantage of low interest rates and flexible payment options.

Diesel and petrol cars continued to be by far the most popular fuel types for consumers with market share at 47.7% and 49.0% respectively. However, alternatively fuelled vehicles (AFVs) experienced a strong uplift in demand, up 22.2% across the year. Plug-in hybrids and petrol electric hybrids, in particular, experienced significant growth, with demand up 41.9% and 25.1% respectively. Meanwhile, more than 10,000 motorists chose to go fully electric in 2016 – up 3.3% on 2015.

Mike Hawes, SMMT Chief Executive, said

Despite 2016’s political and economic uncertainties, the UK’s new car market delivered another record performance as car makers offered an incredible range of innovative and high tech models. 2017 may well be more challenging as sterling depreciation raises the price of imported goods but, with interest rates still at historic lows and a range of new models arriving in 2017, there are still many reasons for consumers to consider a new car in 2017. Looking longer term, the strength of this market will rest on our ability to maintain our current trading relations and, in particular, avoid tariff barriers which could add significantly to the cost of a new car.

Source: SMMT

 

1.6 million cars roll off UK production lines in first 11 months, as global demand reaches new high

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  • UK car production grows 9.6% in the first 11 months to 1,613,495 units – its best performance since 1999.1
  • Exports seal another record, with 1,258,909 cars shipped to overseas markets in the year-to-date.
  • November output rises 12.8% to achieve 17-year high, with 169,247 vehicles rolling off production lines.2

UK car manufacturing output reached its highest level since 1999 in November, with almost 170,000 vehicles rolling off production lines, according to figures released by the Society of Motor Manufacturers and Traders. Year-to-date volumes also achieved a 17-year high, with production in the first 11 months of the year rising to 1,613,495 units – already nearly 56,000 units ahead of year-end 2015.

Production for the home market was particularly strong in November, rising 14.0% to 33,745 units, while exports also saw robust growth, up 12.5%. In the year-to-date, output is up across the board, with domestic demand increasing 4.2% and exports enjoying an uplift of 11.1% to 1,258,909 – beating last year’s record by 2.5%.

Mike Hawes, SMMT Chief Executive, said

Made in Britain is a badge coveted by car buyers worldwide, and these latest figures highlight not just that international appeal but the fact that the UK is a globally competitive place to make cars. These latest results are the product of significant investments made over the past few years, but which will continue only if we can maintain the competitive trading conditions that have enabled the UK to become an automotive success story.

1 1,644,094 cars produced in the UK in the 11 months January-November 1999

2 171,584 cars produced in November 1999

Source: SMMT

 

Eight out of 10 cars shipped overseas in October as export growth drives UK production

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  • UK car manufacturing dips -1.0% in October to 151,795 units as domestic demand falls.
  • Exports rise for 15th consecutive month, with 122,765 cars built for overseas markets, up 1.7%.1
  • Industry remains strong, up 9.2% year-to-date with more than 1.4 million vehicles produced.

car-manufacturing-table-october-16

UK car manufacturing dipped -1.0% in October, ending a 14-month run of growth for the industry, according to figures published by the Society of Motor Manufacturers and Traders.2

151,795 vehicles were built in the month, with production for export growing taking an 80.9% share of volumes. 122,765 cars were shipped to overseas customers, an uplift of 1.7% on the same month last year, and offsetting a -10.9% decline in production for the home market. Despite the fall, domestic demand remains strong, with production in the year so far up 3.3% and at its highest level since 2005.3 Overall production levels, meanwhile, achieved a 17 year record of 1,444,248 – up 9.2%.

Mike Hawes, SMMT Chief Executive, said

October’s figures underline the export-led nature of the industry, with eight out of 10 cars built for overseas customers. Despite model changes which have ended the consistent growth pattern of the past year or so, we are still on track for a record number of exports.

Given this dependence on global trade, it is crucial that British-built cars remain attractive to international buyers and exports are not subject to additional tariffs, costs and other barriers to successful trade. It is also essential government ensures there is economic stability and a competitive business environment to ensure we continue to attract the global investment that is behind this performance.

car-output_rolling-year-totals-october-2016

  1. UK car export volumes have risen in every month since July 2015
  2. UK car manufacturing last fell in July 2015
  3. October 2005, when 363,513 units were produced for the domestic market

Source: SMMT

 

UK car exports pass the million mark in 2016

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  • UK car manufacturing volumes increase by 0.9% in September with 159,726 vehicles produced.
  • Overall output for first three quarters rises 10.5% as exports grow 12.2% to hit 1,000,642.
  • Overseas demand drives production, up 5.0% to 123,119 units, while home market falls -10.6%.

car-manufacturing-table-september-16

 

UK car manufacturing reported steady growth in September, with production rising by 0.9%, according to figures published today by the Society of Motor Manufacturers and Traders. Exports rose 5.0% to reach 123,119 units, offsetting a -10.6% decline in production for the home market.

Overall year-to-date output increased 10.5% to 1,292,453 units, as production for global markets grew for a 14thconsecutive month. Export demand rose by 12.2% to take volumes past one million in the first three quarters for the first time on record.

Mike Hawes, SMMT Chief Executive, said,

British-built cars are in demand across the world as demonstrated by the double digit growth in exports this year, resulting in more than a million cars produced for international markets. The vast majority of cars manufactured here in the UK are destined for abroad and future growth will depend on securing our international competitiveness and the barrier-free access to major global markets that has enabled UK Automotive to thrive.

 

Car output_rolling year totals June 2016

Source: SMMT

 

Over 2 million registrations so far in 2016 as 66-plate drives new car market

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  • 469,696 new cars registered in plate-change September – a steady rise of 1.6% and the highest September on record.
  • Increased demand for diesels and alternatively fuelled vehicles, up 2.8% and 32.6% respectively.
  • Year-to-date total registrations grow 2.6%, with more than 2 million units registered so far this year.

The UK new car market remained steady in September, rising 1.6%, according to data published by the Society of Motor Manufacturers and Traders. 469,696 cars were registered, as buyers purchased the new 66-plate.

september-new-car-registrations-2000-to-present-chart

The performance marks the highest September on record, while the total number of cars registered so far this year also grew to  2,150,495 units – up 2.6% compared with the same period last year. It is only the second time that the two million mark has been passed in September since 2004.1

Fleet registrations continued to drive growth, up 7.3%, while registrations to private motorists experienced a small decline, down -1.7% to 223,844 units in the month. Meanwhile, diesel registrations rose 2.8% as petrols declined
-1.1%. Alternatively fuelled vehicles continued to outpace the market, up 32.6% against the same month last year with a market share of 3.4%.

Mike Hawes, SMMT Chief Executive, said,

September is always one of the biggest months for Britain’s new car market. The new 66-plate, combined with a diverse range of exciting new models featuring the latest technology, has certainly helped draw buyers into showrooms and many are taking full advantage of the attractive deals and low interest financing options on offer. Business and consumers place September orders many months in advance, so the ability of the market to maintain this record level of demand will depend on the ability of government to overcome political uncertainty and safeguard the conditions that underpin consumer appetite.

 

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september_best-sellers

  1.  September 2015 recorded 2,096,886 units registered, the first time the 2 million mark was passed in September since 2004.

Source: SMMT

UK car production hits 16-year high, as industry urges government to safeguard future

  • Double digit growth for UK car manufacturing in June as output rises 10.4% to 158,641 units.
  • Best half year performance since 2000, with 897,157 cars produced – up 13.0% on 2015.
  • Future growth uncertain, as SMMT survey highlights industry concerns over trade and investment after Brexit vote.

Car Manufacturing table June 16

UK car makers reported their 11th consecutive month of growth in June, according to figures released today by SMMT. Production grew 10.4% to 158,641 units – the highest level for the month since 1998, when volumes reached 172,232.

The performance closes the industry’s best first half for 16 years,1 with 897,157 cars rolling off production lines so far in 2016 – up 13% on the same period last year as billions of pounds of earlier investment in new models came to fruition. Exports drove volumes, with year-to-date demand up 14.9% to 695,139 units, while production for the domestic market also grew 7.1%.

UK Automotive is export-led, with 77.8% of cars built in the UK destined for more than 100 overseas markets, but the majority of which are headed for the rest of the EU. The sector is part of a complex, highly-integrated European and global supply chain, and depends on significant cross border trade in components. While local content of UK-built cars is growing, 59% of vehicle components are imported, predominantly from the continent.

That relationship with our biggest market is now uncertain and, as a survey of SMMT members just published shows, is of significant concern. 57.1% of respondents believe the outcome will have a negative impact on their business, while just 8.3% foresee it being positive. A further quarter (27.7%) are uncertain about the impact at this early stage.2

Respondents, including businesses of all sizes, from component suppliers to vehicle manufacturers and importers, are most concerned about the potential negative impact of tariffs, custom charges or other barriers between the UK and the EU single market (68.4%). They also expressed concern about losing access to EU trade deals (66.4%), being bound by regulations in their prime export market over which they have no say (66.1%) and loss of access to the EU-wide skills market (63.6%).

The UK automotive manufacturing sector has grown dramatically over the past few years and now employs 169,000 people, including many skilled EU nationals recruited to fill vacancies which the local labour force could not meet. The lack of certainty regarding the future status of these workers in the UK was cited frequently as a concern (59.7%) along with the potential for a drop in sales (52.7%) and investment (46.1%), with larger companies showing the most concern about the latter.

Mike Hawes, Chief Executive, SMMT, said, “UK Automotive is globally competitive with overseas demand for British made products increasing, not least in Europe which is by far our largest market. The latest increase in production output, however, is the result of investment decisions made over a number of years, well before the referendum was even a prospect. These decisions were based on many factors but, primarily, on tariff-free access to the single market, economic stability and record levels of productivity from a highly skilled workforce. To ensure the sector’s continued growth, and with it the thousands of jobs it supports, these must be priorities in future negotiations.”

Car output_rolling year totals June 2016Source: SMMT

 

UK Automotive reports record £71.6 billion turnover and urges government to keep Britain open for business

 

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The UK automotive industry continues to make significant gains in employment, economic contribution and environmental performance, according to new figures released by the Society of Motor Manufacturers and Traders (SMMT).

The industry body’s 17th annual Sustainability Report reveals that the automotive manufacturing sector turned over a record £71.6 billion in 2015. Jobs, production output and vehicle sales all grew while the environmental impact of manufacturing saw significant reductions. Waste from production was cut by almost a quarter, and water and energy use per vehicle produced were also reduced.

Access to the single market and EU-negotiated international trade deals, the ability to recruit talent internationally and influence new standards have all helped make the UK automotive industry one of the world’s most competitive. This has helped attract billions of pounds in investment in recent years, delivering record productivity, job creation and growth.

The record turnover by automotive manufacturers represents a 7.3% increase on 2014, with the additional value generated for the UK economy standing at some £18.9 billion – itself a 3.8% rise on the previous year. Investment in R&D by the industry also reached a record high of £2.5 billion in 2015, which now represents some 12% of the country’s total R&D spend.

The figures are further evidence of the UK’s status as a global automotive leader, as production and sales of UK-built vehicles continue to grow both at home and abroad.2 The strong performance has been matched by growth in employment, with 814,000 people across the UK now dependent on the sector as a whole for a job – a substantial increase of 17,000 over the previous year. Those employed directly in manufacturing, meanwhile, grew from 161,000 to 169,000, with the average manufacturing worker generating more than £110,000 in value-added to the British economy.3

The sector’s strong social and economic performance has been achieved while simultaneously delivering substantial reductions in its environmental impact. 41% less waste was sent to landfill in 2015 than in the previous year, while the amount of water used to make each vehicle fell to a new low – down by 7.6%, driven largely by improvements in painting processes. Meanwhile, the average new car registered in 2015 emitted 121.4g/km of CO2 – 2.6% less than in 2014.

Mike Hawes, SMMT Chief Executive, said, “UK Automotive has gone from strength to strength, and is now delivering record turnover, record productivity and more jobs. These strong results go hand in hand with a steadfast commitment to improving our environmental performance, which is clearly demonstrated through reductions in CO2, waste and water use.

“This success has been due to unrestricted access to the single market, input to EU legislation to safeguard the interests of UK Automotive, and the ability to recruit talent from abroad. Our growth depends on certainty and continued open and reciprocal access to the 100-plus markets with which the UK automotive industry so successfully trades. This is not just finished cars but components, technologies and the wider automotive value chain. Any risks and uncertainty to these fundamental benefits need to be addressed head on by UK government.”

Preserving and reusing valuable natural resources are major priorities for the automotive industry: notably, more than a third of all companies participating in the Sustainability Report now send no waste at all to landfill. Meanwhile, in February this year, SMMT launched a free recycling ‘take-back’ service to ensure owners of cars whose parent brand no longer operates in the UK can have their vehicle collected and recycled free of charge at the end of its life.4

With an estimated 5,000 vacancies across the industry currently unfilled due to a shortage of available skills, companies are investing heavily in developing the workforce of the future. Sustainability Report signatories alone reported an intake of 825 new apprentices in 2015, up from around 500 the previous year, while each employee across the sector received an average 2.9 days of training – a rise of 5.3%.

Today’s figures are the latest evidence of the UK automotive industry’s strong performance across all areas. Car manufacturing output is already up more than 10% so far in 2016, 2015 saw almost 1.6 million cars made here – the highest volume in a decade – while demand for both cars and commercial vehicles in the UK reached record levels with 2,633,503 million and 420,000 registrations respectively.2

SMMT recently revealed that its supply chain members plan to invest £225 million in new jobs, machinery and new product development in the next three years,5 underscoring the need for economic stability. Meanwhile, the UK’s vehicle service and repair sector was revealed as one of the most competitive in Europe, with British motorists spending £21.1 billion every year looking after their cars – 12% more than the global average – as they ensure their vehicles remain safe, efficient and in fine fettle.6

These developments mean the sector is well placed to meet increasingly stringent environmental targets, as well as take advantage of opportunities from emerging alternative fuel and connected and autonomous vehicle technologies.

Click here to download the full report.

Source: SMMT

Strong start to 2016 for HGV market as new registrations grow by a fifth

Strong start to 2016 for heavy truck market as new registrations grow by a fifth – SMMT

Strong start to 2016 for heavy truck market as new registrations grow by a fifth

  • New HGV market grows 19.2% in Q1 2016 with 10,363 units registered.
  • Demand for rigids over 16T fuels market growth with 48.1% increase.
  • Articulated segment declines -9.3%, driven by fall in demand for 3-axle units.

HGV Overview table

The new HGV (heavy goods vehicle) market in the UK grew by almost a fifth in the first quarter of 2016, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). Continued business confidence resulted in more than 10,000 new commercial vehicles over six tonnes being registered in the first three months of the year, a 19.2% increase compared to Q1 2015.

Growth was driven by increased demand for rigids, specifically those over 16 tonnes which saw a 48.1% rise, offsetting a small decline in 3-axle artic registrations. Tractors were the most popular body type for HGVs in the first three months of the year, accounting for 38% of the heavy goods vehicles that hit British roads in Q1.

Mike Hawes, SMMT Chief Executive, said, “This is a positive start to the year for the heavy truck market, with demand having stabilised following the regulatory upheaval seen in 2014. Large rigids saw more moderate growth than at the end of 2015 – a sign that the sector is set for a continued, steady period of growth.”

HGV Quarterly insight Top 5 body types chart

HGV registration by nation table

Source: SMMT

Export growth sees healthy rise for UK car production in April

  • UK car production makes further positive gains in April, up 16.4% with 149,334 units built.
  • Strong growth in manufacturing for export, with volumes up 23.7% in the month.
  • 588,024 cars built in 2016 so far – a 10.8% rise over the same period last year.

UK car manufacturing continued to make significant gains in April, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). Almost 150,000 cars were built in the month, a 16.4% increase on April 2015, and marking the ninth consecutive month of growth.

Increasing overseas demand for British-built cars was again the driving force behind the growth: production for export jumped 23.7% in April, counterbalancing a 7.8% decline in cars made for the domestic market.

April’s figures bolster an already positive 2016 for UK car output, with 588,024 cars built in the first four months of the year – up 10.8% on the equivalent period in 2015.

Mike Hawes, SMMT Chief Executive, said, “Britain’s car manufacturing sector continues to thrive with a steady domestic market and surging demand from overseas, including our biggest export destination, Europe. This growth represents a significant endorsement of the strength and quality of the UK automotive industry.”

Car Manufacturing table

Source: SMMT

Stable growth for UK new car market in April

  • New car registrations show steady increase of 2.0% in April to 189,505 units.
  • Growth in fleet and business segments offsets small decline in private demand.
  • Registrations of alternative fuel vehicles rise 26.8%, in line with the year so far.

Friday 6 May, 2016 New car registrations in the UK made a modest gain of 2.0% in April, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT). 189,505 cars were registered in the month – the most in April since 2003, when 194,312 new vehicles found homes.

Apr_ME

As in March, the market growth in April was led by the fleet and business sectors, where respective increases of 6.1% and 2.8% counterbalanced a 2.5% fall in private registrations.

Meanwhile, demand for both petrol and diesel models remains high. Registrations of petrol cars increased 3.4% in April, while diesel saw a slight 0.6% decline. Following the trend set in the first three months of the year, uptake of alternative fuel vehicles jumped by more than a quarter as buyers looked to reduce emissions and running costs.

April’s performance puts registrations for 2016 to date 4.4% up on the same period last year. It follows a bumper March in which more than 518,000 cars were registered – the second-biggest month on record. Demand for cars has been running at a high level, after 43 consecutive months of growth in the market led to an all-time high of 2.63 million car registrations in 2015.

Mike Hawes, SMMT Chief Executive, said, “After such a strong March, April’s steadier performance was to be anticipated, and is in line with our expectations for the year. Consumer confidence remains high as buyers continue to capitalise on attractive finance deals, although this could be affected by political and economic uncertainty in the coming months.”

Car Apr_best sellers

Download the April 2016 new car registrations news release and data table.

Source: SMMT