The UK automotive industry experienced a six-year high in 2013 as Britain’s car output was up by 4.5%. The UK car manufacturing industry produced over a million cars and production stood at 1.42 million units in the first eleven months of 2013. Industry experts said that by far, 2013 has been the best year in car production since 2007.
The Society of Motor Manufacturers and Traders (SMMT) attribute this growth to the new models that have been launched in the market. Mike Hawes, Chief Executive at SMMT said: “The new models would play an integral part in 2014 and should boost production. The UK market is reflecting growing economic confidence.”
Car manufacturing was highest in September 2013, as production rose to 140,888, which was an impressive 9.9% rise from 2012. The rise in production of export cars also hiked by 9.3%, this was a direct result of increase in demand in China, Russia and the US for luxury British brands.
Hawes also added that long-term financial commitments and the UK’s expertise in designing, manufacturing and engineering high-quality products has created a huge demand for British goods worldwide.
UK-built world-class car designs have created a private demand that has accelerated the growth in this sector. Customers are now increasingly getting attracted to newer models that are not only fuel-efficient but also offer better scope of savings in the cost of ownership.
Another reason why the market is picking up a steady pace is because of the availability of financing deals. It is now possible for buyers to lump together the payments of servicing and vehicle excise duty. Richard Lowe, an analyst at Barclays, said: “Attractive finance packages are offering consumers more clarity on running costs, which even with a more promising economic outlook is an important factor for those on a budget.”
It is typical of a car owner to replace a car after three years but due to the recent economic conditions, buyers were holding off from the market. Currently, cars made in the UK account for one in seven of the domestic sales. The SMMT has assessed that buyers are now beginning to return to the market and looking for better car deals that can offer them greater fuel economy.
At present, the UK car market is the second biggest in Europe after Germany. In 2013, around 2.3 million cars were bought in Germany and in the UK market around 1.8 million cars were sold. It is predicted that keeping in tune with the growth period experienced in 2013, the new year will continue to see a rise in the production of cars in the UK. The SMMT has forecasted that Britain’s car output will hit two million a year by 2017.
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