SMMT: UK car manufacturing hits 10-year-high as car makers keep the pedal to the metal
Car manufacturing in the UK has hit highs not see for a decade, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
From the beginning of the year through to the end of October, production volumes were recorded to be at their highest levels since 2005, with 36,000 more units made this year than last.
The 1.31m new cars rolling off the production lines so far this year is up 2.8 per cent on the same period last year.
Exports were found to have driven growth last month, up by 1.5 per cent, although domestic market demand fell by 0.7 per cent.
Mike Hawes, SMMT chief executive, said: “Given the slowdown we’ve seen in several key global markets in recent months, UK automotive manufacturing still remains in a strong position.”
This global slowdown is worrying some industry watchers, with the strength of the pound also casting a shadow over future exports.
After a strong first half to 2015, car production has been volatile in the last few months: down in July, up in September and down slightly in October.
The auto industry trade body put this fall down to factories gearing up for new models.
Motor industry expert David Bailey, professor of industry at Aston University’s business school, Birmingham, told City PM: “There are other factors in the slowdown; the strength of sterling has slowed exports in recent months, and faltering demand from emerging markets like Russia and China is also now taking a toll.”
“That emerging market slowdown has a particular impact on the UK’s premium car sector, the second largest in the world,” Bailey added.
Car producers in the UK include Nissan, Toyota, Vauxhall and Honda.