The UK auto industry’s trade association, the SMMT, has hailed the sector’s dynamism and contribution to the UK economy, in an event at the Eiffel Tower ahead of the Paris Motor Show.
The event today comes amid considerable uncertainty over the future trading arrangements between the UK and the EU following the summer referendum result in favour of the UK leaving the EU. The automotive manufacturing sector is concerned that tariffs could be imposed on UK-EU trade, a move which could increase costs and harm international competitiveness for UK producers. The SMMT has said that it considers free-trade between the UK and EU in automotive products as an essential part of a future deal between the UK and the EU’s remaining states. However, the UK’s government has yet to determine its negotiating position ahead of the triggering of formal negotiations to leave the bloc.
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The SMMT has today again stressed the importance of the EU as an export market for UK-produced vehicles.
Eight of the UK’s major car brands were present at the Eiffel Tower in Paris to “demonstrate the diversity and quality of cars currently produced in the UK”. Senior executives from British-based manufacturers, including Aston Martin, BMW MINI, Honda, Jaguar Land Rover, McLaren, Nissan, Toyota and Vauxhall, were joined by Mark Garnier MP, the British Parliamentary Under Secretary of State at the Department for International Trade, to promote the strength of the UK automotive sector to a global audience.
The SMMT said in a statement that the UK automotive industry has “undergone unprecedented growth in recent years – thanks to competitive business conditions, tariff-free trading and significant investment in new models and facilities”. It also pointed out that car manufacturing achieved a 10-year high last year with a record 1.2 million cars exported to more than 100 countries. Already in the first eight months of 2016, that total looks set to be beaten this year, with exports reaching almost 900,000 vehicles – 13% ahead of the same period in 2015.
The UK’s biggest trading partner is the European Union and 57.3% of UK-produced cars have been exported to the rest of the EU so far this year, followed by 12.1% to the US and 7.1% to China. While the US topped the list of individual countries buying British cars, EU Member States took six of the top 10 places: Germany, Belgium, Italy, France, Portugal and Spain, the SMMT noted.
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By GlobalDataMike Hawes, SMMT Chief Executive, said: “The UK automotive industry is respected globally for its rich heritage, iconic brands and engineering excellence. More than £10 billion of investment has gone into new facilities and models over the past five years and we’re proud to see so many rival brands coming together to promote the strengths of UK Automotive ahead of a key international motor show. The future success of this sector will hinge upon the ability of the UK to maintain the business and trading conditions that make the sector so competitive globally.”
Top export destinations for UK cars (January-August 2016)
