“UK vehicle production could hit the 2 million mark in 2016,” says John Leech, UK head of automotive at KPMG.
The UK produced 1.6 million cars, vans and motorcycles in 2012, the highest level since 2008.
Car exports reached an all-time high in 2012, with production rising by 9% to 1.5 million on the back of strong exports growth.
Despite the problems in the eurozone, over 1.2 million cars were sold overseas in 2012, an 8% increase on the year before. This means that 82% of all cars made in the UK are now exported.
Mr Leech believes that car production will continue to rise, driven by new vehicle production plans at Nissan and JLR.
Almost half of all cars made in the UK came off the production lines at Nissan’s Sunderland plant, which reached record levels in 2012.
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Nissan made 510,000 cars in 2012, 30,000 than last year after strong demand for its Qashqai, Juke and Note models.
“We have a diverse and innovative automotive sector with some of the most productive plants in the world,” said Business Secretary Vince Cable.
Dr Cable believes that the UK can build on this and has placed the automotive sector at the centre of the Government’s long-term industrial strategy.
“JLR’s Range Rover is the vehicle that best meets the consumer aspirations of the fast-growing middle-class in emerging markets especially China while Nissan’s Qashqai kick-started the fast-growing urban crossover vehicle segment,” said Leech.