January sees decline in car production
Forecasts for 2015 predicted that car sales would accelerate, yet we’ve seen a decline in car production numbers for January.
We’ve previously reported on how new car sales soared in 2014 and hit a ten year high, and similar rates were expected in 2015. January 2015’s car sales figures prove that these predictions are not always correct and saw a decrease of 1.2% in car production, down to 127,385 units.
SMMT chief Mike Hawes argues that the dip in production is not a cause for concern. He argues that the dip is caused by the influx of new technologies and UK manufacturers being busy utilising these and building new models. Moreover, the SMMT expects car production to increase for the rest of the year.
Decline in Car Production
Although the total number of exports has fallen for the second consecutive year, exports to China have been rising and have increased seven-fold since 2009. 2014 saw 137,410 UK produced cars exported to China, their purchase of cars manufactured in the UK second only to UK consumers. In fact, exports to almost all of Asia are increasing, UK exports to Asia have almost trebled in the past five years and Asia is the UK’s biggest export after Europe. Some countries have experienced more modest growth than others, but the number of car exported to South Korea has risen five-fold since 2009. Not only has exports increased, but the wholesale value of UK car exports has increased in this past decade, jumping from £12bn in 2004 to £26bn in 2014. The average value of the vehicles has also increased from £10,200 to £21,800.
Tradex has been specialising in motor trade insurance for 30 years, therefore we will be keeping a close eye on how the motor trade will fare this year in terms of car sales and exports.
Photo by I Am Dabe