UK car manufacturing defies export challenges with year of growth

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UK car manufacturing has seen its best year since 2007 with 1,528,148 cars manufactured in the UK in 2014 – a 1.2% increase on the previous year.

It was also the strongest December in a decade with 108,721 cars produced, up 27.1% on December 2013. Output for the UK market matched the growth in overall UK registrations, rising 8.0%.

Mike Hawes (pictured), chief executive of the Society of Motor Manufacturers and Traders, 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."

He added: "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."

Meanwhile, UK engine manufacturing has returned to growth having seen output rise 6.7% in December. However, output fell 6.2% over the year following retooling at a number of facilities.

Hawes said: "Last year was one of underlying positivity for UK engine manufacturing with full year output down on 2013, due to retooling for new products at a number of plants."

"Investment exceeding £1 billion over the last few years from manufacturers, including BMW, Ford and Jaguar Land Rover, is expected to add £2.5bn to the sector's turnover in the coming years. This is beginning to manifest itself in monthly output growth."