JLR jobs just a sign of things to come for auto industry – PwC
THE latest announcement by Jaguar Land Rover of hundreds of new production jobs is a sign of things to come as the premium car market continues to go from strength to strength, a sector analyst has said.
Phil Harrold, partner at PwC in the Midlands and a member of the firm’s UK automotive group, said investment in the UK car industry was now paying dividends.
“There has been a lot of investment in UK car production in recent years and this is reaping rewards, particularly at the premium end of the market where demand from Chinese consumers in particular is growing strongly,” said Mr Harrold.
“For volume manufacturers, depressed demand from Europe is affecting output and in some cases jobs are being lost. Despite this, the outlook for UK car production as a whole remains strong and in the longer term, we would expect to capitalise on some of this optimism and see demand improve, especially on the production side.
“News that demand for new cars has taken a turn for the better in the US is more good news for car production in the Midlands, as this is likely to translate into increased demand for BMW’s Mini, which is manufactured in Cowley.”
JLR sold 358,000 vehicles in 2012, an increase of 30% on the previous year. The main increase in demand is from consumers in China – now the firm’s largest market – the Far East and Russia.
A report published by the Society of Motor Manufacturers and Traders (SMMT) in October 2012 forecast that UK-based car production would increase to 2.2m vehicles by 2016 – the highest level since 1971.
