Automotive sector cheered by strong output figures

THE UK automotive industry has received welcome news with an announcement that UK car production rose by 6% last month, while in the year to date the figure has increased by 31% when compared with last year.

The sector, which is critically important to the economy of the West Midlands, has improved because of a growing demand for British-made models such as Jaguar and Land Rover.

Figures released by the Society of Motor Manufacturers and Traders showed the total number of cars manufactured in October was 112,798. In the year to date, 1,050,689 vehicles have rolled off production lines, a rise of 31.1% on 2009.

While impressive, the figures have to be placed in the correct context and growth is from a very low base due to the recession which hit the sector hard during 2009, even taking into account incentives such as the Government’s scrappage scheme.

The commercial vehicle sector, one which is sometimes overlooked but which is of equal if not greater significance to the economy, also fared well. It rose 47.1% last month compared with a year ago, while it is up 39% for the year.

In addition to the major manufacturers themselves, the output figures will also make good reading the supply chain sector, which supports thousands of jobs in the region.

Paul Everitt, SMMT chief executive, said: “UK vehicle production rose 8.8% in October and signals steady improvement in global vehicle markets and the strength of the UK product line-up.

“It is extremely important that government continues to champion the role of vehicle manufacturing in rebalancing the national economy and works with the automotive industry to create conditions for increased investment in R&D, skills and capital equipment. Industry’s focus on low carbon technology and its global reach can help generate the private sector growth the country needs.”