The automotive industry has been a rare bright spot in the UK for the past few years, with more and more companies choosing to invest in British factories than ever before. Recently, Vauxhall, Jaguar Land Rover and Honda have all chosen to make large investments into their manufacturing plants in this country, leading to a boom in jobs for skilled workers in many areas. Furthermore, Jaguar Land Rover will be launching several new models within the next four years, all of which will be manufactured in the UK, which has meant further investment to update existing factory lines.
Business Secretary Vince Cable visits Jaguar Land Rover
This, clearly, has had an effect upon the car buying public in the UK. Coupled with the end of the recession and higher fuel costs leading to a desire for more fuel efficient vehicles, the popularity of the car manufacturing industry has caused a boom in the number of new cars registered here in Britain.
In November, the number of new cars registered rose by 11.3 per cent when compared to statistics from the previous year, putting Britain second only to Germany in terms of the European car market.
The rise in November sales pushed the year to date total of new cars sold to 1.92 million, which is a 5.4 per cent increase on the same 11 month period in 2011. And with the Society of Motor Manufacturers and Traders (SMMT) predicting full year sales to top two million, this will mean 2012 has been the most successful year for the UK automotive industry since 2008 when the recession had not yet discouraged consumers from splashing out on expensive luxuries.
Chief executive of the SMMT, Paul Everitt, warned that complacency is not an option for motor retailers, as “the outlook for 2013 remains challenging.”
However, he did indicate that the future is bright for retailers as more drivers are flooding showrooms in search of new vehicles, rather than the industry being dependent on businesses looking to buy in fleets of company cars.
He said; “The upward trend has been driven by private retail customers.”
Private buyers, for example, were behind a larger than 20 per cent boost in sales between October and November of this year, while they have largely made up for the deficit in fleet vehicle buyers across 2012 in general.
There was good news in terms of the British export market too, as this year’s Los Angeles motor show provided a platform for UK based manufacturers to debut their latest ranges. Jaguar Land Rover displayed its third generation Land Rover and highly anticipated Jaguar F Type to enthusiastic crowds, with North American president of the company, Andy Goss, saying; “This year’s Los Angeles Auto show is one of the most significant shows in years for us.”
American consumers, for so long drawn to the “muscle car” stereotype, are increasingly driving the market for alternative energy and low carbon emission vehicles – something many US manufacturers are failing to keep up with. As a result, more and more consumers from across the pond are turning to European and Asian manufacturers, which can only be good news for an ever expanding British motor industry.
Director of Motor Intelligence, Brad Smith, says; “Loyalty to US manufacturers, while historically high, began to decline in 1999.
“The most obvious change has been that the once dominant domestic automakers have lost market share to Asian manufacturers.”
He also highlighted that there has been “an increase in loyalty to European brands, despite their relatively low share.”
Clearly, the boom in British manufacturing has become a force to be reckoned with in the motor industry, with ever increasing numbers of large brands choosing to invest in the country’s abundance of skilled workers. The real question is whether technology can continue to move forward quickly enough to tap into the alternative fuel market which, with the price of wholesale oil remaining unpredictable, will make many consumer budgets that little bit more secure.
Do you think the British automotive industry will be able to expand indefinitely, or will there be a time when sales will be limited simply because the country’s output cannot keep up with international consumer demand? Should British motorists attempt to remain loyal to brands manufactured in the UK, or is buying into the Asian market an essential factor in the industry’s competitiveness?
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