UK domestic demand remains robust and the improving economic conditions in the global economy, particularly in Europe, are driving an uptick in orders from overseas, with exports increasing by 8.7% year on year in April.
Simon Heath, KPMG’s automotive M&A specialist, commented on the UK car production figures for April published today by the SMMT.
“UK domestic demand remains robust and the improving economic conditions in the global economy, particularly in Europe, are driving an uptick in orders from overseas, with exports increasing by 8.7% year on year in April. Improving worldwide demand is particularly important to UK-based premium car manufacturers such as JLR, BMW and Bentley. This was further reinforced by Aston Martin yesterday, announcing a further 250 jobs at its Gaydon plant, part of a total £500 million investment into future sports car ranges.
“The outlook through to 2017 looks strong, with a series of new models and increased capacity coming online. UK production is forecast to increase to 2 million vehicles by 2017, and this is attracting foreign investment into the UK’s supply chain. This increased investment is crucial and will enable smaller manufacturers to finance the anticipated uplift in production volumes.”
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