UK car industry expected to grow in 2015 – report

London – The Society of Motor Manufacturers and Traders (SMMT) has declared 2014 a “very successful year” for the UK automotive industry.

SMMT issued a press release quoting chief executive Mike Hawes as saying that 2013 and 2014 marked major investments in the car industry adding that “more is expected in 2015”.

“Placed in context, a 1.2-percent growth in UK car manufacturing in 2014 represents a very successful year. The industry has overcome various challenges, including slower than expected EU recovery and weakness in some global markets.

“More than £7 billion (€9.3 billion) of investment into UK production facilities has been announced in the past two years,” said Hawes.

We are now seeing the effects as new models begin production – with more expected in 2015, he added.

“UK car manufacturing is now more diverse than ever, with a unique combination of volume, premium and specialist brands giving our products truly global appeal,” said the industry leader adding that car export values had doubled in the decade from 2005 to 2014.

UK car export destinations by volume - 2007 vs 2014 (Q3)

The news release highlighted “diversity” as a key strength of UK car manufacturing.

“The proportion of premium and specialist cars, in particular, has grown in the past decade, leading to increasing demand outside the EU,” noted the report, adding that China was the UK’s second-largest market outside the EU.

Another result of an increasingly diverse product mix, it said, is a rapid rise in value.

“In 2004, the wholesale value of UK car exports was around £12 billion; this has doubled to more than £26 billion in 2014, despite a similar number of cars exported,” concluded the report.