Here at QuoteSearcher we regularly discuss the fact that the UK motor trade has been booming over the past few years, and now reports have shown that Britain has officially exported five million vehicles since the beginning of this decade. This is an amazing feat and one that motor traders across the country should be extremely proud of, regardless of whether you work in the vehicle manufacturing, vehicle maintenance or vehicle sales industries, as it all contributes to expanding the market.
The figures were released by the Society for Motor Manufacturers and Traders (SMMT) and show that 102,981 cars built in the UK were sold overseas in July, meaning that since 2010 5,095,796 vehicles have been exported in total. Compared to the previous decade, in the same amount of time only 4.5 million vehicles were sold, showing that the motor trade is doing even better now than it was ten years ago. Discussing the figures, SMMT chief executive Mike Hawes said: “The UK automotive industry continued its renaissance in July, with the month marking five million car exports since 2010. This is a major milestone and testament to the burgeoning reputation of UK automotive excellence and demand for British-made cars.”
The Confederation of British Industry (CBI) has also recently released figures concerning the UK motor trade and claimed that during the month of July production of vehicles for export increased faster than expected. Katja Hall, deputy director-general of the CBI, said: “The outlook for UK manufacturers remains healthy, with both total and export orders firming up. Despite a dip in the pace of output growth, companies expect a strong pick-up in the next three months.
“But with growth flat at best in the Eurozone and sterling having risen in recent months, there are still some headwinds to export demand. We need more manufacturers exporting to high-growth markets, which will help to put the recovery on to a more balanced, sustainable footing.” Meanwhile, Paul Hollingsworth, assistant economist at Capital Economics, said: “The manufacturing recovery has re-built some steam in the third quarter. However, the industrial recovery looks set to remain domestic-led. So, the manufacturing recovery looks set to be strong, but not spectacular for now.”
Even though some industry experts are wary of the future of the UK’s export industry, a recent survey conducted by the British Chambers of Commerce (BBC) and DHL Express showed that UK exporters are extremely optimistic about the next twelve months. In fact, seventy per cent of exporting businesses said that they believe turnover will increase further within the next year, which is ten per cent more than last year.
However, John Longworth, director general of the BCC, said that even though the outlook looks positive the government need to do more to improve the UK export industry. He added: “If we are going to reach the government’s target of increasing exports to £1tn by 2020, the UK should be matching the level of resourcing dedicated to export support provided by our major international competitors. As a nation we can and must do more if we are to remain competitive and stand a chance at rebalancing the UK economy for the long term.”
On the other hand, David Bailey, professor of industrial strategy at Aston Business School in Birmingham, praised the government for improving the UK’s export market. He said: “It has bounced back quickly since the severe downturn in 2009, helped by the exchange rate depreciation, world-class manufacturing, excellent industrial relations and to an extent the government’s industrial strategy.”
Even though some industry experts are reluctant to say that the UK motor trade industry looks positive for the future, motor traders will be more than happy to hear that their efforts are being rewarded. Hopefully, this influx in money coming into the UK will be put back into the motor trade sector so that Britain can continue to be a world-leader in exporting a range of high-quality vehicles.