Automotive sector hits record £69.5bn turnover

FIGURES released today by the Society of Motor Manufacturers and Traders (SMMT) confirm the UK automotive industry is breaking new records.

SMMT’s 16th annual Sustainability Report reveals turnover hit an all-time high of £69.5bn in 2014.

Manufacturing output, vehicle sales, jobs and export values also grew, while the environmental impact from vehicle production has been reduced dramatically.

The latest figures confirm an upward trend for new vehicle demand and manufacturing output, with almost 1.6m vehicles built in 2014.

Last year, car production alone grew to 1.53m units – the highest level since 2007 – with an increasing number of vehicles built for the domestic new car market, which itself grew 9.3% to reach 2.48m registrations last year.

On current trends, UK car output is expected to reach an all-time record level of 1.95m vehicles in the next two years.

Meanwhile, investment in more efficient, high-tech manufacturing processes has led to huge gains in productivity. In each of the five years to 2014, an average of 11.5 vehicles were produced for every person employed in the industry, compared with 9.3 vehicles for the period from 2005 to 2009.

Despite greater production volumes, environmental impact has been significantly reduced. Total waste to landfill from all automotive production fell by more than a quarter (26.3%) in 2014, and 92.3% since 2000.

Mike Hawes, SMMT chief executive, said: “The UK automotive industry can be proud of its achievements as it continues to set new standards. The sector is delivering growth in volumes, turnover and employment, while reducing its environmental impact.

“Continuing to expand in a fiercely competitive global market is a major challenge and will depend on a supportive economic and regulatory environment which promotes investment to foster innovation and continuing productivity improvements.”

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