RSM comments on the latest UK car production growth figures

Commenting on UK car production growth figures announced by the Society of Motor Manufacturers and Traders (SMMT) today Kevin Rooney, Partner and Manufacturing specialist, said:

‘The UK car manufacturing sector continues to thrive as volumes increased again by 0.9 per cent in September. This is echoed by today’s announcement from Nissan which confirms the new Qashqai and X-Trail will be manufactured from its Sunderland plant – which is not only a real boost for the North East and the wider motor sector, but it reaffirms Nissan’s commitment to the UK despite the Brexit decision.’

‘Brexit doesn’t seem to be affecting consumer confidence and demand as yet, which could be due to the current exchange being favourable for car exports. However, the three months that have passed since the Brexit result almost mirrors the average 13-week lead time on new car orders, so it will be interesting to see if new cars orders start to decline towards the end of the year.’

‘What is increasing to note in the SMMT figures is the shift in demand for cars manufactured in the UK from overseas which has increased year-on-year by 5 per cent, highlighting that the ‘Made in Britain’ brand continues to carry a lot of cache in international markets. This activity is driving the market, offsetting the decline in production from the UK market. However, this does amplify the need to secure favourable international trading arrangements following the Brexit decision to maintain this upward trend.’