Engineering news
UK car production achieved a 17-year high in 2016, according to the latest figures from the Society of Motor Manufacturers and Traders.
The SMMT revealed that 1,722,698 vehicles rolled off production lines in 2016 from 15 manufacturers, an 8.5% increase on 2015, and the highest output since 1999.
Production growth was driven by overseas demand, with global appetite for British-built cars rising by 10% 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.
Growth was strong across a number of markets, notably the US – the UK’s biggest export destination after the EU – where demand rose by 47% meaning it now accounts for around 14.5% of all UK car exports. Notable uplifts were also seen in Turkey, Japan and Canada while China, third on the list of export markets, grew by a more modest 3.1% with 88,610 vehicles exported last year.
However, it was continuing economic recovery across Europe that accounted for the bulk of the growth. Exports to the rest of the EU grew to 758,680 and accounted for more than half of all UK car exports.
Domestic demand for UK built cars also grew in 2016, up 2%, and the UK remains the second largest car market in Europe, again after Germany. One in seven new cars registered by UK buyers is made in Britain, up from one in eight three years ago.
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.
The figures reveal that the manufacturers committed to invest approximately £1.7 billion in the sector in 2016, down from £2.5 billion in 2015.
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,” he warned.