Best half year for UK car manufacturing since 2008 as exports soar

FIGURES released by the Society of Motor Manufacturers and Traders (SMMT) reveal that the sector has enjoyed its best half-year output since 2008.

Car manufacturing increased by 5.4% in June to 143,759 units, with strong export performance.

A strong June meant that the January-June output outperformed last year by 0.3%, taking it to the highest half-year level for seven years.

Some  793,642 cars rolled off UK production lines between January and June – equating to more than three every minute.

Production for export was up by 9.0%, outperforming that for the domestic market (down 7.1%) – a reversal of the trend seen in previous months.
 
The news comes amid further evidence that the sector is leading the way on productivity. New figures reveal that the sector achieved £100,000 in value added per employee in 2014 compared with £74,000 in 2010 – a 35% increase.

The performance is particularly impressive when set against the £50,000 average per employee for the UK economy as a whole.
 
With production volumes up more than 50% since 2009 and significant investments still to be realised – a raft of brand new models are set to hit production lines in the coming months – the UK car industry is growing on a global scale, the SMMT points out.

Mike Hawes, SMMT chief executive, said: “Today’s figures are testament to the ever-increasing demand for the diverse, high-quality range of cars we make in the UK.

“The sector is ahead of the game on productivity, with investment in efficient, high-tech manufacturing processes and a highly skilled workforce resulting in huge gains over the past decade.
 
“This success has been built on significant industry investment and has also relied on a positive relationship with government, essential if the industry is to maintain its international competitiveness.”