UK car production best this millennium

UK car production grew almost 10% in the first 11 months of 2016 – the industry’s best performance this millennium.

Exports also set new records, with 1,258,909 cars shipped overseas for the year to date.

In November, output rose 12.8%, with 169,247 vehicles rolling off production lines.

In the period January to November, 1,613,495 vehicles were produced, a 9.6% increase and the highest level achieved since 1999.

The figure is almost 56,000 vehicles ahead of the total for 2015.

The Society of Motor Manufacturers and Traders said production for the home market was particularly strong in November, rising 14% to 33,745 units, while exports also saw robust growth, up 12.5%.

In the year-to-date, output is up across the board, with domestic demand increasing 4.2% and exports enjoying an uplift of 11.1% to 1,258,909 – beating last year’s record by 2.5%.
 
Mike Hawes, SMMT Chief Executive, said: “Made in Britain is a badge coveted by car buyers worldwide, and these latest figures highlight not just that international appeal but the fact that the UK is a globally competitive place to make cars.

“These latest results are the product of significant investments made over the past few years, but which will continue only if we can maintain the competitive trading conditions that have enabled the UK to become an automotive success story.”

The impact of Brexit and the weakening of the pound may be a contributory factor, with British-made goods now cheaper for international buyers.

However, cost prices continue to mount for component firms in the supply chain so what 2017 may hold for the industry will be fascinating to see.

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