Monday, 3 February 2014
Automobile Production in U.K. Highest Since 2007
The production of cars in the United Kingdom witnessed a 3.1% spike in 2013. This production rate is the highest since 2007. According to industry watchers, this high demand can be attributed to higher exports in Non-European countries as well as domestic demand for automobiles. With its resurgence, the British car making industry could well be poised to overtake France, to emerge as the third largest manufacturer of cars in Europe.
The data that was released by the U.K. Society of Motor Manufacturers and Traders on Thursday indicates that the British automobile manufacturing industry is all set to outdo its own record production figures of 1.92 million that was achieved in 1972. The new record is likely to be set over the next few years given that the British automobile industry is currently witnessing a new wave of foreign investment.
According to the CEO of SMMT Mike Hawes, the total automotive investments in 2013 in the United Kingdom were higher than USD 4.12 billion. This has led industry analysts to renew their projections that the car industry in the UK could surpass its own record output over the next four years.
In 2012, the total number of cars that were manufactured in the U.K amounted to 1.51 million, as compared to the 2012 output of 1.46 million units. This growth comes despite the decision of auto giants such as Ford to down the shutters on two of its smaller facilities in the country so as to cut costs as mitigate the impact of the European economic slump.
On the other hand, other companies such as Nissan Motor Co from Japan have upgraded their investments in the country.
According to data released by the SMMT, the total number of car units produced for the British market saw a 22% rise in 2013. Factors such as attractive financing options from car makers and a buoyant British economy have propelled this growth story.