UK car manufacturers last year enjoyed their highest production output since 2007, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).
It said 1,528,148 cars were manufactured in the UK in 2014 – a 1.2% increase on 2013.
And the strongest December in a decade saw 108,721 cars produced, up 27.1% on December 2013.
More than £7Bn of investment into UK production facilities has been announced in the past two years
Mike Hawes, SMMT chief executive, said: “Placed in context, a 1.2% 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 £7Bn of investment into UK production facilities has been announced in the past two years, and we are now seeing the effects as new models begin production – with more expected in 2015. 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. This is epitomised by the doubling of car export values in the decade from 2005 to 2014.”
The SMMT said a key strength of UK car manufacturing is its diversity, with a mix of volume, premium and specialist products in high demand around the world. The proportion of premium and specialist cars, in particular, has grown in the past decade, leading to increasing demand outside the EU (above). China is now the UK’s second-largest market outside the EU, accounting for around 12% of exports in 2014 compared with just 1% in 2007.
Another result of an increasingly diverse product mix is a rapid rise in value. In 2004, the wholesale value of UK car exports was around £12Bn; this has doubled to more than £26Bn in 2014, despite a similar number of cars exported. The average car exported in 2004 was worth £10,200, compared to £21,800 in 2014.
