cars

UK forecast to produce 2 million cars a year by 2020

Published: 05:32, October 14, 2015

carsA new forecast predicts that by the year 2020 the UK will break car manufacturing records.

Annual car production is forecast to increase to 2 million cars a year by the end of the decade, according to a recent report by the Society of Motor Manufacturers and Traders (SMMT).

The report suggests that car production will beat the previous record of 1.92 million set in 1972.

The UK produced 1.5 million cars last year and the country is currently on track to become the third-largest European carmaker – behind Germany and Spain – over the next five years.

A key factor for increased car production is the production of more premium models, the SMMT report said.

Premium car manufacturing is expected to increase from 37% of total car production in 2010 to 54% by 2020. In terms of premium car production the UK car industry is second only to Germany.

The boost in car production is expected to create an extra 28,000 jobs in the supply chain and 9,500 jobs involved in manufacturing.

SMMT chief executive Mike Hawes said: “This report is further proof of the growing stature of the UK as a global destination for high quality vehicle manufacturing.”

“The automotive industry has made tremendous strides in recent years, as significant investment, along with partnership with government, has driven huge growth in production and employment.”

“The prospect of further jobs growth, particularly in the supply chain, is extremely encouraging, while the UK’s consolidation as a global hub for premium production is testament to our prowess in design and precision engineering.”

The SMMT said that its forecast was dependent on the UK remaining in the EU.

Veronica Salvador Avatar

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