A report commissioned by the SMMT says that the UK has become a ‘destination of choice’ for global vehicle manufacturers and suggests that there are major opportunities ahead for suppliers as vehicle output in Britain continues to rise.
The report was undertaken by consulting firm KPMG and projects that vehicle output in the UK will grow to over 2.2m units a year by 2016.
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“With unprecedented levels of investment committed to UK automotive in recent years, the future for our industry is bright. It is clear that domestic suppliers have the potential to benefit significantly from increasing output volumes, but they need the right mix of government support and private investment,” said Paul Everitt, SMMT Chief Executive.
“With robust global markets and a diverse mix of models produced here, we are more resilient than other countries to eurozone weakness, a key factor in encouraging businesses to invest in the UK.”
John Leech, KPMG UK Head of Automotive, said: “Over the past year and a half, almost all of the major UK vehicle manufacturers have announced new model production plans, capacity enhancements or workforce hires in the UK. All of this inward investment into Britain’s automotive industry shows long term commitment by global automotive industry players. As a result, vehicle production is expected to increase for at least the next three years, in spite of weakening demand from the eurozone.”
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