The motor vehicle manufacturing industry in the UK: statistics and policy.Jump to full report >>
The industry has performed well in recent years, achieving strong growth in employment, production, economic output and exports. But the industry worldwide faces fundamental challenges, including profound shifts in global demand, environmental concerns and the advent of new technologies such as driverless cars.
And the UK’s decision to leave the EU has increased uncertainty in the industry, although some argue that the opportunity to strike new trade deals will off-set any additional complexity in the UK-EU trading relationship.
The UK automotive manufacturing sector is highly integrated with the rest of Europe, in both finished cars and component parts. For instance, the UK imported £13.95 billion’s worth of vehicle engines and parts in 2017, 79% of which came from the EU. The manufacturers’ trade body (EEF) and the automotive trade body (SMMT) have both called on the Government to protect this close integration.
The Government’s industrial strategy for the automotive sector focuses on the development of ultra-low emission, connected and autonomous vehicles. Against the backdrop of emission scandals, the diesel share of the new car market has started to decline, and is forecast to continue to do so.
Commons Briefing papers SN00611
Authors: Jennifer Brown; Chris Rhodes