SMMT figures suggest car manufacturing will lead UK growth

John Leech, partner in KPMG’s automotive practice has suggested the recent upturn in UK car manufacturing could suggest that the sector will lead the country’s economy back to pre-financial crisis growth. The Society of Motor Manufacturers and Traders showed car production rising in January 2012, with 15.6 per cent more manufactured cars on January 2011. The figure comes on the back of increased demand for British-made cars in growth export markets.

“Coming quickly on the heels of the promising UK new car sales figures last week, UK car production rose 15.6 per cent in January 2012 on the back of strong demand for cars made in the UK and exports to developing economies such as China,” said Leech. “This raises hopes that 2012 could be the year that sees UK car production bouncing back to 2006 levels.  I expect production to strengthen in 2012 to over 1.4 million new cars made in the UK this year. 

“All in all we expect a gradually improving story throughout 2012. There are significant investments in new models and production capacity at a number of plants, notably at JLR and BMW. Despite the continuing threat of Eurozone macroeconomic uncertainty, there’s great potential for the UK auto industry to grow and develop from a manufacturing and supply-chain perspective.”

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