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High-value investment in R&D facilities is paving the way to a prosperous future for UK automotive

Home / News / High-value investment in R&D facilities is paving the way to a prosperous future for UK automotive

UK car manufacturing rose 6.5% in October and was up 9.7% over the year-to-date.

CV output rose 5% over the month but year to date is down 6.1%, according to figures from the SMMT.

“Sustained, high-value investment in R&D, facilities and new products is paving the way to a prosperous future for UK automotive, but there remain significant challenges as European market demand remains weak,” said SMMT chief executive Paul Everitt.

“It is essential government continues to focus on boosting economic growth and enhancing UK competitiveness.”

John Leech, KPMG UK head of automotive, said: “Despite troubles in Europe still posing a threat to demand, UK car plants are continuing to win market share across Europe and premium automakers are still benefiting from strong demand from the emerging markets.

“We expect to see these trends follow this route over the next few years and therefore expect UK production to continue to grow on average by 9% per annum to 2.2 million vehicles in 2016.

“However, there is an emerging industry issue in the supply-chain around finance.

“Many suppliers are starting to see volumes decline as Eurozone demand crumbles while some suppliers to premium automakers such as Jaguar Land Rover (JLR) are struggling to raise the finance necessary to invest in tooling for new models” he said.