LONDON, January 26, 2017 /PRNewswire/ --
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). 1,727,471 vehicles rolled off production lines last year from some 15 manufacturers, an 8.8% uplift on total production 2015 - and the highest output since 1999.
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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.
Japan remains a key trading partner with the UK, with demand for British-built cars increasing by 14.8% in 2016 to nearly 26,000. Growth was also strong across a number of other 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 3.7% 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, Japanese-built models are increasingly popular among UK motorists. They now account for 4.7% of the new car market, with 125,713 registered in 2016, an increase of almost a fifth (19.3%) on the previous year.
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. The Japanese and UK automotive sectors have a long history of cooperation and we have welcomed recent Japanese investment decisions in the UK which will lead to future growth and jobs for this industry."
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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 1,727,471 8.8%
Home 19,656 18,669 -5.0% 359,796 373,255 3.7%
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
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