The UK car manufacturing sector has shown signs of recovery this year, as the Society of Motor Manufacturers and Traders recently reported production is up by more than 10 per cent this past August.
Production increases, which in turn mirror car sales and discount car insurance policy sale increases, has been 4.4 per cent higher this year overall than it was in 2010. The SMMT predicts this performance to continue to improve into the coming year, which is good news for car insurance companies.
Automotive practice partner for the KPMG, John Leech, remarked that these figures were particularly strong and work to highlight the staying power of the automotive industry in the UK, which includes manufacturers, retailers and motor car insurance providers. The best performance was in the engine production sector, which increased by 14.4 per cent last month and was already 4.8 per cent above last year’s figures, but other sectors, such as commercial vehicle production, which only increased by 9.3 per cent in August and was still 4 per cent down for this year, did not perform as strongly.
Paul Everett, the SMMT’s chief executive, painted a rosy picture when discussing the figures in a recent interview, attributing the production rises to new investment. With last month’s automotive output up so significantly and the UK sector securing long-term growth through a recent wave of private investors, Mr Everett said that a recovery, led by manufacturing, is rapidly taking shape.
The chief executive said that the UK manufacturing sector would easily exceed production volume figures from 2010, and that the growth wave would continue into the New Year.