Economy

British manufacturers made more cars in 2015 than any year since 2005 when 1,595,677 vehicles were produced. Production increased 3.9% on 2014, with output at 1,587,677 overtaking pre-recession levels for the first time.

chart_manufacturing15

A record number of cars 1,227,881 – representing 77.3% of total production – was for export in 2015 up 2.7% on 2014 levels. Challenges were experienced in some global markets such as China, where demand fell by 37.5%, and Russia, where export volumes declined 69.4%. However, the economic recovery in Europe, the UK’s biggest trading partner, boosted demand for UK-built cars considerably by 11.3% in 2015. The region now accounts for 57.5% of all UK car exports.

New investment to support growth

The automotive industry is truly global and attracting inward investment to the UK remains a high priority for industry and government.

Development of a suitably skilled and flexible workforce is a top priority achieved through investment in training and apprenticeship schemes.

Taxation

Each year, the Budget includes specific taxation measures for the motorist. In 2001, government changed the vehicle taxation system aligning it to tailpipe CO2 emissions. This was further modified in 2009 as the limits between bands were tightened.