44 motoring
UK new car market sustains growth momentum
The Society of Motor Manufacturers and Traders (SMMT) has announced that, compared with May 2012, UK new car registrations rose 11% or 17,823 units in the month to 180,111 units. The 2013 May market was the highest May volume in six years, just 3% below the 2007 level.
The new car market has now grown for 15 successive months, largely in line with recovery in the private market, where demand grew 20.9% in May, and pushed volumes back above 2007 pre-recession levels. Private registrations over the first five months of the year have risen 16.2%. Fleet and business volumes also improved.
Ride to Work Day
Staff at Honda (UK) showed their support for the industry initiative ‘Ride to Work Day’, which encourages motorcycle and scooter riders to demonstrate just how enjoyable and practical their daily commute and how things could be improved if more people commuted on motorcycles and scooters every day – reducing journey time, alleviating traffic congestion, lowering travel costs and being more considerate towards the environment.
According to SMMT, this growth reflects a combination of factors, which may include: consumers returning to the new car market after delaying regular replacement cycles, motorists replacing vehicles bought under the Scrappage Incentive Scheme, motorists switching to more efficient vehicles in every class and attractive offers catching the attention of buyers with funds and access to finance. A switch from used to new may also be occurring, as the recession-induced dip in new car sales restricts the supply of used cars.
Total new car registrations for the year-to- date remain 9.2% off 2007 volumes, but growing consumer confidence has meant
that private demand for the same period is just 2% off levels posted in 2007.
Mini segment cars have seen the strongest growth so far in 2013, although most segments have posted increases.
Small cars tend to be petrol-fuelled and petrol-powered cars have seen the strongest growth so far in 2013, up 14%.
The Ford Fiesta was the best selling model in both the month and year-to-date.
The automotive industry is a vital part of the UK economy accounting for £55 billion turnover and £12b value added. With more than 700,000 jobs dependent on the industry, it accounts for 10% of total UK exports and invests £1.3b each year in automotive R&D.
SMMT supports the interests of the UK automotive industry at home and abroad, promoting a united position to government, stakeholders and the media.
Benefits to UK car industry of EU-US free trade agreement
Ken Clarke, in his capacity as the prime minister’s trade envoy, has highlighted the extraordinary potential benefit which a successful Transatlantic Trade and Investment Partnership (TTIP) between the EU and the US could have on jobs and output in the UK car industry.
His comments were made in June when he and the business secretary Vince Cable jointly hosted a meeting in Whitehall with senior executives in the automotive industry and the powerful sectoral trade body, the Society of Motor Manufacturers and Traders (SMMT) to discuss how to ensure UK firms get the most out of the TTIP.
A huge number of riders rode their diverse Honda machines into the company’s head office near Slough, where everyone gathered for a group photograph and ‘bikers’ breakfast’, including non-rider colleagues.
Throughout the day, many more staff took the opportunity to get on two-wheels by taking advantage of the ‘ride out’ and ‘have a go’ sessions. Employees were offered the chance to ride some of the new for 2013 Honda models with the car park at Honda HQ transformed into a riding school for the day.
‘Ride to Work Day’ sits perfectly alongside the Motorcycle Industry’s national ‘Get On’ campaign, which is encouraging thousands of new people into biking and also offers free one hour riding taster sessions at numerous motorcycle training schools around the country.
Details:
www.geton.co.uk www.ridetoworkday.co.uk www.honda.co.uk/motorcycles
www.businessmag.co.uk
A successful trade partnership between the EU and the US would not only remove trade tariffs, reducing costs for those who export to and import from the US, it would also bring manufacturing standards in the two blocs into line. This would have a huge positive impact by removing the red tape and bureaucracy that can get in the way of companies that would like to take advantage of the opportunities presented by foreign markets.
It is forecast that the
agreement could boost total exports for the UK as a whole by 1.3%, or around £19 billion.
Figures released in an impact assessment on the TTIP conducted by the Centre for Economic Policy Research show a successful deal could see the UK automotive industry gain double digit growth in exports:
• In the most optimistic scenario UK motor vehicle exports (including components) are projected to grow by up to 25% whilst imports grow by 5%. The study projects that motor vehicles (including components)
output could increase by over 7%, and that jobs could also increase by 7%.
• Even based on a more modest scenario, exports are expected to grow by nearly 11%, sectoral output by 4%, and jobs by 4%.
• Current UK auto sector employment is up at 131,000.
• Other key sectors set to gain are financial services, insurance services, the chemicals industry, and the food & drink industry.
A joint paper written in May by the European and American Automotive trade bodies estimates that the elimination of tariffs and 10% of existing non-tariff barriers would increase EU vehicle and parts exports to the US by 71%, and that the elimination of tariffs and 25% of existing non-tariff barriers would increase EU vehicle and parts exports to the US by 149%. (Note: these percentages are accumulative. UK car industry output is set to be one of the highest beneficiaries in the EU from a successful deal).
This comes at a time when the UK car industry is going from strength to strength. In 2012, we produced 1.58 million vehicles. Figures compiled by the Society of Motor Manufacturers and Traders (SMMT) on a rolling 12 month basis show that UK vehicle production continues its upward trend, up 17% in April and output so far this year is up 1.5%. SMMT analysis suggests that UK car manufacturing could grow a third bigger by 2016 with growth expected year-on-year.
Production figures for other European nations are available here:
www.oica.net/ category/production-statistics/.
THE BUSINESS MAGAZINE – THAMES VALLEY – JULY/AUGUST 2013
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