UK car production hits 16 year high

UK car production has hit a 16 year high, with 897,157 cars produced in the first half of 2016, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

The figure represents the best half year performance since 2000 and a 13 per cent increase compared to the same period last year. June marked the 11th consecutive month of growth for UK carmakers with 158,641 units produced, the highest number since 1998.

However, despite the positive growth, the SMMT has warned that the vote to leave the European Union (EU) could negatively the UK’s automotive industry. The UK automotive sector is export-led, with 77.8 per cent of cars built in the UK shipped to overseas markets. The EU makes up a huge proportion of these exports and the SMMT has raised concerns that the UK’s relationship with its biggest market is now uncertain, which is describes as a ‘significant concern’.

A survey of SMMT members found that 57.1 per cent of respondents believe the outcome will have a negative impact on their business, while just 8.3 per cent foresee it being positive, and the SMMT has called on the government to safeguard the UK automotive’s future.

Mike Hawes, SMMT chief executive, said, “UK automotive is globally competitive with overseas demand for British made products increasing, not least in Europe which is by far our largest market. The latest increase in production output, however, is the result of investment decisions made over a number of years, well before the referendum was even a prospect. These decisions were based on many factors but, primarily, on tariff-free access to the single market, economic stability and record levels of productivity from a highly skilled workforce. To ensure the sector’s continued growth, and with it the thousands of jobs it supports, these must be priorities in future negotiations.”

Read more