John Leech, KPMG UK head of automotive, comments on The Society of Motor Manufacturers and Traders (SMMT) UK car production figures which fell 5.8% in September but remains up10.2% over the year-to-date:
“At first glance, Europe poses a real threat to UK car production as its economies struggle to restore business and consumer confidence. However, demand for cars outside of Europe in countries such as China and India is still strong and expected to remain steady going into 2013. Therefore, a drop in last month’s output figures should be taken with a pinch of salt as the UK is set to invest and grow its automotive industry including its supply chain for the export market.
“Throughout 2012, we’ve seen car production in the UK rise and fall. At the beginning of the year the Euro crisis deepened and UK car output clearly reflected a change in business and consumer attitudes in Europe. But despite weakening demand in the Eurozone, UK car production rose on the back of strong exports to non-European economies such as China at the beginning of the year. We can expect this trend to continue into 2013 but this time we are also expecting a bounce back from the UK consumer.”
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