John Leech, KPMG’s UK Head of Automotive comments on the UK car production figures for November published today by the SMMT:
“UK car production dipped by 3.6 percent in November 2013 but year-to-date production figures are up by 4.5 percent. A number of manufacturers, including BMW and Nissan, are preparing for new model launches and as such, have seen their production levels fall as previous models sell-out.
“The industry is in confident mood as its key export market, the EU, continues to recover, posting its third straight monthly sales increase. Most analysts are now forecasting EU car sales will grow in 2014, reversing six-straight years of falls. The UK market is also expected to grow next year by approximately 5 percent but not as quickly as in 2013. This reflects the fact that the UK market is almost back to its long-run sales average.
“As for the rest of the EU, in Northern EU countries car sales are approximately only three-quarters of their long-run sales average and half in Mediterranean countries. This means the medium-term prospects for UK automotive production remain bright and will principally be fuelled by exports to both the EU and emerging markets.
“Our forecast is that UK production will continue to rise in 2014, 2015 and 2016 before peaking in 2017 at 1.9 million vehicles.”
Nahidur Rahman, KPMG Press Office
020 7694 8812 (t), 0788191 6975 (m) or firstname.lastname@example.org
KPMG Press Office: 020 7694 8773
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