The UK automotive industry is continuing to grow at a fast pace and manufacturing output is predicted to break the all time vehicle production record in 2020. If the current trend continues, the 1972 record high of 1.92 million cars will be broken within five years.
Today’s new forecast report launched by the SMMT indicates that the UK automotive industry is on track to break manufacturing records by 2020. In 2014 more than 1.5 million cars were manufactured, with the trend of manufacturing growth continuing throughout 2015. The UK will strengthen claim as the third largest car manufacturer in Europe, behind Germany and Spain.
The rise in vehicle manufacturing is expected to give a large economic boost with a rise in employment throughout the sector predicted. Up to 9,500 jobs will be created by vehicle manufacturers alone, with a further opportunity to create 28,000 jobs throughout the supply chain as the demand for UK-made components increase.
UK vehicle production has seen a shift to premium vehicles in recent years, with a consequent increase in the value of the vehicles that are manufactured and exported. The predicted rise of UK car production will see the share of cars produced by premium manufacturers grow from a level of 37% in 2010 to a projected share of 54% by the end of the decade. The impact of the growing global demand for premium vehicles shows promise for the UK economy, as the UK is currently the second highest manufacturer of premium cars in Europe.
To date, the APC has invested in 10 major low carbon propulsion projects worth more than £174 million which will secure or create more than 4,500 jobs in the UK and reduce CO2 emissions by more than 12 million tonnes, equivalent to the CO2 emissions from 630,000 new cars, every year, for the next 12 years.