The SMMT has announced that UK car production in 2014 totalled 1,528,148 units – a 1.2% increase on the previous year and the best year since 2007.
The annual total was boosted by the strongest December result in a decade that saw 108,721 cars produced, up 27.1% on December 2013.
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However, December’s result followed some slowdown in previous months and exports were down last year.
SMMT noted that overall growth comes despite “challenges in some export markets”. The demand picture in many European markets remains one of low growth and fragile recovery.
Output for the UK market matched the growth in overall UK registrations last year, rising 8.0% to 332,952 units.
Output for export, however, was down 0.5% last year, to 1,195,196 units (some 78% of UK car output was exported last year).
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By GlobalDataMike Hawes, SMMT Chief Executive, said: “Placed in context, a 1.2% growth in UK car manufacturing in 2014 represents a very successful year. The industry has overcome various challenges, including slower than expected EU recovery and weakness in some global markets.
“More than £7 billion of investment into UK production facilities has been announced in the past two years, and we are now seeing the effects as new models begin production – with more expected in 2015. UK car manufacturing is now more diverse than ever, with a unique combination of volume, premium and specialist brands giving our products truly global appeal. This is epitomised by the doubling of car export values in the decade from 2005 to 2014.”
For the UK government, Business Secretary Vince Cable emphasised the economic importance of the UK auto industry’s strong performance. “These production figures are testament to the strength of our automotive industry, and show that even in tough economic conditions it continues to be one of the driving forces behind our economic recovery,” he said. “From Sunderland to Goodwood, Britain is turning out cars that are in demand all around the world.”
“The UK’s automotive industry is thriving with a new car rolling off the production line every 20 seconds, while increasing levels of investment are helping to secure local jobs. Through the government’s industrial strategy we are backing the automotive industry as it goes from strength to strength.”
KPMG’s UK Head of Automotive, John Leech, also noted that delays in some model launches left the annual total slightly under expectations. “There were delays in new model launches, most notably at BMW MINI,” he said. “And there is no doubt that the economic woes of the eurozone and Russia hurt exports.
However, he was upbeat on prospects for some manufacturers. “We expect a number of manufacturers to post higher volumes in 2015, particularly Jaguar Land Rover, BMW and Vauxhall which all launched new models recently. Our forecast is that UK production will grow by 8% to exceed 1.6 million vehicles in 2015.”
The SMMT also published 2014 output totals by manufacturer, which showed another strong performance from Tata-owned Jaguar Land Rover (JLR), which managed a 7.3% gain to just under 450,000 units of production.
The SMMT said that an increasingly diverse product mix in the UK is leading to a rapid rise in the value of production and exports. In 2004, the wholesale value of UK car exports was around GBP12bn; this has doubled to more than GBP26bn in 2014, despite a similar number of cars exported. The average car exported in 2004 was worth GBP10,200, compared to GBP21,800 in 2014.
Some analysts forecast that the UK car output could be approaching 2m units by the end of the decade, which would surpass the last record level of 1.9m units in 1972.
| Car output 2014 | |||||
| Manufacturer | Model range | Location | 2014 | 2013 | % change |
| Nissan | Juke, LEAF, Note, Qashqai | Sunderland | 500,238 | 501,756 | -0.3% |
| Jaguar Land Rover | F-type, XF, XJ, XK, Defender, Discovery, Evoque | Castle Bromwich/Halewood/Solihull | 449,507 | 418,875 | 7.3% |
| Freelander, Range Rover, Range Rover Sport | |||||
| MINI | MINI | Oxford | 178,993 | 174,997 | 2.3% |
| Toyota | Auris, Avensis | Burnaston-Derby | 172,215 | 179,233 | -3.9% |
| Honda | Civic, CR-V, Jazz | Swindon | 121,799 | 138,812 | -12.3% |
| Vauxhall | Astra | Ellesmere Port | 77,836 | 73,466 | 5.9% |
| Others | 27,560 | 22,623 | 21.8% | ||
| All makes | 1,528,148 | 1,509,762 | 1.2% | ||
| Source SMMT |
