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The health of the UK automotive industry pre and post-Brexit
Britain’s automotive industry enjoyed a record £71.6bn in turnover in 2015 – a 7.3% increase on 2014. The figures were reported in the Society of Motor Manufacturers and Traders (SMMT) 17th annual Sustainability Report. Significant gains were made in employment, economic contribution and environmental performance.
With the industry in such strong health, the SMMT has joined a chorus of manufacturers, dealers and other representative bodies in calling on Government to ensure the uncertainty sparked by Brexit is dampened swiftly and the country is “kept open for business”.
Download our latest FREE eBook – Brexit and the automotive industry – for the industry reaction to Brexit.
The 2015 automotive industry in figures
In comparison with 2014, the automotive industry saw increases in revenue, investment, employment and sales. There were also falls in all the right places, with wastage and emissions down. The SMMT’s report stated: “The figures are further evidence of the UK’s status as a global automotive leader, as production and sales of UK-built vehicles continue to grow both at home and abroad.”
A few highlights:
- 814,000 people employed in the sector – up by 17,000
- Over 3 million new car and commercial vehicle registrations
- £21.1bn spent by British motorists looking after their cars
For further figures download our eBook – Brexit and the automotive industry.
What about 2016 so far?
The UK new car market grew by 3.2% in the first six months of the year, according to the latest figures from the SMMT. A record 1.42m new cars have been registered so far in 2016 – with all fuel types showing growth. Alternatively, fuelled vehicles continued to show the largest percentage gains over previous months, up 21.3% compared with the same period in 2015, and now account for 3.2% of the overall market.
However, demand fell in June by 0.8%, with a 4.5% drop in private sales matched by a 4.5% rise in fleet registrations. Mike Hawes, SMMT Chief Executive, said: “It is far too soon to determine whether the referendum result has had an impact on the new car market. The first six months saw strong demand at record levels but the market undoubtedly cooled over the second quarter. It’s important Government takes every measure to restore business and economic confidence to avoid the market contracting in the coming months.”
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