17 Year High for British Car Manufacturing With Indian Demand Up 12.8%

LONDON, January 26, 2017 /PRNewswire/ --

• 1.7 million cars built in the UK in 2016, an increase of 8.5% and the highest output for 17 years.
• Exports at record levels for the second consecutive year as more than 1.35 million cars shipped worldwide.
• More than one in two cars exported to Europe, our single biggest trading partner, with demand up 7.5%.
• Demand in India for UK cars rises 15.8% as more buyers opt for British luxury brands.

UK car production achieved a 17-year high in 2016, according to the latest figures published today by the Society of Motor Manufacturers and Traders (SMMT). 1,722,698 vehicles rolled off production lines last year from some 15 manufacturers, an 8.5% uplift on total production 2015 - and the highest output since 1999.

     (Logo: http://photos.prnewswire.com/prnh/20160118/323200LOGO )

More cars are now being exported from Britain than ever before, the result of investment made over recent years in world-class production facilities, cutting-edge design and technology and one of Europe's most highly skilled and productive workforces. Ten brand new car models began production in the UK last year, nine of them from premium brands which has helped make the UK the second biggest producer of premium cars in Europe, after Germany and the third biggest car producer.^[1]

Production growth was predominantly driven by overseas demand, with global appetite for British-built cars rising by 10.3% to an all-time high of 1,354,216 - a second consecutive annual record. Around eight out of every 10 cars manufactured in the UK is now exported, bound for one of 160 markets worldwide.

India is now the eighth biggest Asian market for UK car exports, with demand rising at a rapid rate as an increasing number of affluent buyers take advantage of a range of all new premium and luxury British-built cars. UK car exports to the country grew 15.8% to 3,372 in 2016.

Growth was also strong across a number of other key markets, notably the US - the UK's biggest export destination after the EU - where demand rose by almost half (47.2%) meaning it now accounts for around 14.5% of all UK car exports. Notable uplifts were also seen in Turkey, Japan and Canada, while China, third on the list of export markets, grew by a more modest 3.1% with 88,610 vehicles exported last year.

It was continuing economic recovery across Europe, however, that accounted for the bulk of the growth. Exports to the rest of the EU grew 7.5% to 758,680 and accounted for more than half of all UK car exports. EU countries make up exactly half of the UK's top 10 individual global markets, with Germany leading, followed by Italy, France and Belgium. Furthermore, Europe supplies the majority of components (65%) within UK-built vehicles, underlining the critical importance of tariff and barrier-free trade to future UK automotive production.

Domestic demand for UK built cars also grew last year, up 2.4% in the year, and the UK remains the second largest car market in Europe, again after Germany. One in seven new cars registered by UK buyers is now made in Britain, up from one in eight three years ago. Meanwhile, last year Indian-built models accounted for 31,535 new car registrations in the UK, an uplift of more than 12.6% on 2015.

Mike Hawes, SMMT Chief Executive, said, "The tremendous growth in UK production is testament to the global competitiveness of the UK automotive sector. High class engineering, advanced technology and a workforce committed to quality have helped turn around the industry, making the UK among the most productive places in Europe to make cars. India and the UK have a great history of collaboration in the automotive sector and it is essential we secure a mutually beneficial trade relationships in the future."

Top 5 British Bestsellers in India 

1. Land Rover Discovery Sport   

2. Land Rover Range Rover Evoque

3. Jaguar XF                     

4. Jaguar XE                     

5. Jaguar F-Pace

  
    THE UK EXPORTS TO MORE THAN 160 COUNTRIES WORLDWIDE
  
    UK Car manufacturing    Dec-15    Dec-16    % Change     YTD-15    YTD-16     % Change
    Total                   114,842    113,976    -0.8%    1,587,677    1,722,698     8.5%
    Home                     19,656     18,669    -5.0%      359,796      368,482     2.4%
    Export                   95,186     95,307     0.1%    1,227,881    1,354,216    10.3%
    % export                  82.9%      83.6%                 77.3%        78.4%   
  
  
    TOP EXPORT DESTINATIONS FOR UK CARS
  
               2016 share
    EU                  56%
    USA               14.5%
    China              6.5%
    Turkey             3.1%
    Australia          2.5%
    Japan              1.9%
    Canada             1.8%
    South Korea        1.7%
    Israel             1.1%
    Russia               1%

Notes to editors 

(1) Aston Martin DB11; Bentley Bentayga; Jaguar F-Pace; Infiniti Q30; Infiniti QX30; Land Rover Range Rover Evoque Convertible; McLaren 540; McLaren 570; Rolls Royce Dawn; Vauxhall Astra Sports Tourer

About SMMT and the UK automotive industry 

SMMT is one of the  UK's largest and most influential trade associations, supporting the interests of UK Automotive, and promoting a united position to government, stakeholders and media. 

The automotive industry is a vital part of the UK economy accounting for £71.6bn turnover and £18.9bn value added. With 169,000 people employed in manufacturing and 814,000 across the wider industry, it accounts for 12.0% of total UK export of goods and invests £2.5bn each year in R&D. Some 30 manufacturers build more than 70 vehicle models  supported by 2,000 component providers and some of the world's most skilled engineers. More at http://www.smmt.co.uk/facts16.

Contacts   

Keely Scanlan 
+44-020-7344-9222  
kscanlan@smmt.co.uk

Lucy Bielby   
+44-020-7344-1610  
lbielby@smmt.co.uk