Car production hits four-year high
CAR production in the UK is at its highest for four years with exports at all-time thanks to demand for luxury products from the likes of Jaguar Land Rover, latest figures have shown.
Latest figures from the Society of Motor Manufacturers and Traders showed UK car manufacturing broke all-time export records in 2012, with volumes sent overseas exceeding 1.2m – up 8% on last year.
Total vehicle output increased 8% last year to 1.58m, the highest level since 2008. Also, car output rose 9% in 2012 to 1.46m units, ending the year with a 6% rise in December.
Paul Everitt, SMMT chief executive said, “2012 was a very good year for UK car production with record levels of exports and volumes at their highest since 2008.
“The outlook for 2013 remains positive with demand in many faster growing global markets offsetting the continued weakness in European economies. The £6bn of investment committed to UK facilities, new model programmes and R&D signals a bright future and many new opportunities for companies in the supply chain.
“These remain extremely challenging times and it is essential industry and government continue to work together to secure long-term industrial growth.”
As well as Land Rover’s top-selling Evoque, which is made at the Halewood plant on Merseyside, Cheshire’s Bentley Motors, pictured below, also enjoyed a strong 2012 with sales up 22%.
John Leech, UK head of automotive at KPMG, said the performance had essentially been driven by great performances at both Jaguar Land Rover and Nissan.
“JLR’s Range Rover is the vehicle that best meets the consumer aspirations of the fast-growing middle-class in emerging markets especially China while Nissan’s Qashqai kick-started the fast-growing urban crossover vehicle 
segment,” he said.
“The dramatic fall in car sales throughout the euro zone has undoubtedly impacted the UK car industry and has hit Honda and Ford’s Transit production already. There remains further risk that production will fall in the first quarter of 2013 as the euro zone remains under pressure.
“However, the medium-term prospects of the UK car industry remain excellent and UK vehicle production should hit the two million mark in 2016. This will be driven by new vehicle production plans in place at Nissan, JLR and other UK car plants that should be resilient to continuing Eurozone weakness.”
Business Secretary Vince Cable said the figures were testament to the UK’s manufacturing strengths and were especially encouraging because of the challenging trading conditions in Europe and strong international competition.
“The government is creating a highly supportive business environment to ensure that UK manufacturers continue to flourish as well as encouraging further investment in the UK automotive sector, including the supply chain.
“There is no room for complacency and to build on this competitive advantage we are working jointly with the auto sector on a long term industrial strategy,” he said.
