UK car industry 'booming' with more than a million vehicles built this year

The automobile sector faces bigger risks from the Brexit negotiations than many others in Britain

(Reuters)

The UK built over a million cars in the first seven months of the year for the first time since 2004. The Society of Motor Manufacturers and Traders (SMMT) said output was up for the twelfth month in a row, with 7.6 per cent more cars made than in July 2015.

Amid a series of pessimistic predictions about the UK economy, including higher inflation and house price crashes, the Brexit vote appears to have as yet had little impact on the car industry.

“UK car production in 2016 is booming, with new British-built models in demand across the world. Manufacturers have invested billions to develop exciting new models and produce them competitively here in the UK,” said Mike Hawes of the SMMT.

Output for the domestic market was up 14 per cent in July with a 6 per cent jump in exports. Figures also show the used car market is also currently very strong

More than three-quarters of a million cars built in the UK this year were for overseas markets - about 80 per cent of the total manufactured.

The automobile sector faces bigger risks from the Brexit negotiations than many others in Britain because the EU imposes a 10 per cent import tariff on vehicles from outside the bloc and over half of British car exports are sold there.

Hawes urged renewed focus on ensuring that Britain remains open to international trade and investment: “Future success will depend on continued new car demand and attracting the next wave of investment so Britain must demonstrate it remains competitive and open for business,” he said.

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