Industrial strategy can multiply trade and investment
A challenging start to the year for UK automotive manufacturers continued into April, with the latest SMMT data out this week showing vehicle output at a 70-year low for the month. The performance is a reflection of an industry undergoing immense transformation amid strong global headwinds. For the car sector, weak demand in key markets and model changeovers have constrained production, while lower CV output follows plant consolidation and normalising demand following major post-pandemic investments by fleet operators and other buyers.
The majority of vehicles made in Britain are produced for overseas markets so it is unsurprising fewer cars and commercial vehicles were exported last month, but the EU remained by far our largest market with more than half of all exports heading there. Given the importance of our trading with the bloc, last week’s UK-EU trade agreement, although not specifically concerning automotive trade but coming on the back of those with the US and India, provides a necessary platform to build upon. We need such strong foundations to ensure the UK remains an attractive destination for investment from global businesses which will support economic growth.
We have a world-leading automotive industry with a highly skilled workforce, globally renowned R&D and established brands. But with countries around the world vying for major investment in their own industries, we need a regulatory and investment environment that enables UK automotive manufacturers to thrive – rather than merely survive. The long-awaited Industrial Strategy, expected to be published next month, must do just that.
Such a strategy must also boost the supply chain and aftermarket, and businesses across both sectors will be seeking productive new partnerships at SMMT’s Meet the Buyer and Meet the Van Accessories, which take place at Automechanika Birmingham on 4 and 5 June respectively. The events will connect buyers and suppliers covering the full range of automotive commodities and tiers, so we look forward to meeting and championing our members there.