Car makers’ 16-year high production boom despite Project Fear warnings

CAR-MAKING in Britain is booming, with production topping a million vehicles so far this year, the highest output for 16 years, according to motor industry bosses.

Exports are also up, with eight out of ten cars built in Britain destined for overseas.

The upbeat results for the first month after the June Brexit vote give welcome relief and fly in the face of the dire predictions from many in the Remain camp.

The latest figures released today by the Society of Motor Manufacturers and Traders (SMMT) say UK car manufacturing had its 12th consecutive month of growth in July, rising to 126,566 vehicles, up 7.6 per cent on July 2015.

Powered by car-makers with UK plants, such as Jaguar Land Rover, Nissan, Toyota, Honda and Bentley, production for the year to date grew by 12.3 per cent to 1,023,723 vehicles – the best performance since 2000, and the first time in 12 years production has topped a million vehicles in the first seven months of the year.

Exports for July increased by 6 per cent, while those for the first seven months of 2016 rose by 13.7 per cent to 796,323 vehicles.

The SMMT’s report says: ‘Demand in July was up both at home and abroad with a 14.1 per cent increase in output for the domestic market and exports up 6 per cent to 101,184 units.’

Mike Hawes, chief executive of SMMT, said: ‘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. 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.’

The UK automotive industry accounts for 12 per cent of total UK exports and invests £2.5billion each year in automotive research and development.

With more than 30 manufacturers making more than 70 models, it achieves a £71.6billion turnover and £18.9billion value added to the UK economy. It also employs 169,000 people directly in manufacturing.