SMMT CEO Mike Hawes has told just-auto that after a flat 2014, car production in the UK should rise in 2015.
In 2014, UK car production totalled 1,528,148 units – a 1.2% increase on the previous year. It was the best year for UK car production since 2007, but Hawes noted the total was held back last year by weak demand in some export markets.
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Speaking in Geneva, Hawes told just-auto that he expects a better year this year.
“We’re seeing a gradual pick up to demand in Europe and there are a lot of new products coming out from the UK’s production base. So the total car production number should be significantly up this year.”
Analysts note that UK car production in 2015 will be lifted by projected higher output due to recently introduced models at a number of makers including JLR and BMW MINI. KPMG forecasts that UK car production will grow by 8% to exceed 1.6m in 2015.
Hawes also said that he sees a stable UK car market in 2015 (it almost reached 2.5m units in 2014).
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By GlobalData“We can’t see it being up 9.5% the way it was last year. It could post growth of 1 or 2%. Considering last year was the fourth highest UK car market ever, that’s a really good place to be.”
It’s an election year in the UK, which means that the SMMT will be continuing to focus on promoting the industry and having regular dialogue with the major political parties.
“We don’t just start that in an election year,” he said. “That dialogue is happening throughout the course of a parliamentary term. Clearly what we are asking for is a degree of consistency. There’s an industrial sector strategy – in the shape of the Automotive Council – that has been really supportive for the industry. We’re seeing things like the Advanced Propulsion Centre, issues like the industrial partnership, jobs, schools and training. We want to see a continuation of that.
“The UK automotive industry is growing, is doing well, is helping to rebalance the economy, is export-led and it needs that continued support whoever wins the election.”
