The demand for cars manufactured in the UK is on the rise, with the home market leading this trend although growth in the European market suggests that it is set to follow.
According to statistics from the Society of Motor Manufacturers and Traders (SMMT), demand for car manufacturing within the UK market rose considerably during October to 52.4 per cent; moving up by 26.6 per cent compared to 2012. Meanwhile, exports grew significantly too to 11.4 per cent; this represents an increase of 0.9 per cent.
During this period, car output also increased at its fastest rate seen so far this year; rising by 17.4 per cent to 160,854 units. Overall this year, car output has risen by 5.4 per cent with 1,286,287 being produced during the last 12 months.
Chief executive of the SMMT Mike Hawkes said: “UK car manufacturing for the home market increased strongly in October raising the year’s performance 26.6 per cent ahead of 2012.
“More than 15 brands build 50-plus models of car across the UK with volume and niche offerings providing a wealth of choice for our home and export markets. With European demand showing early signs of recovery, we expect production to continue positively in the coming months.”
Part of the reason why demand for cars has been increasing in the UK is as a result of improving consumer confidence, with more people feeling as though they have the freedom to spend and are less inclined to save. Additionally, cheaper finance deals have made new vehicles more affordable.
SMMT statistics show that car exports to Europe have now risen for two consecutive months. As roughly half of cars manufactured to be exported from the UK go to Europe, a recovery in this market will offer considerable support to the industry.
Continued rising demand within the car manufacturing sector could result in a need for companies to increase production and expand their workforce.