2012 Strong Year for Auto Industry in U.K., Growth to Continue

The U.K.’s £55 billion ($90 billion) automotive sector has had a year it can be proud of, the Society of Motor Manufacturers and Traders says.

While the national economy experienced an economic double-dip, automotive flew the flag for the U.K., SMMT CEO Paul Everitt says, becoming the European Union’s second-largest new-car market and producing nearly 10% more vehicles than it did in 2011.

“The U.K. has outperformed our European partners during 2012, with vehicle manufacturing and new-car registrations rising strongly through the year,” Everitt says in a statement.

“While most EU markets have been impacted by eurozone instability, the U.K. has benefited from £6 billion ($9.8 billion) of new investment from global vehicle manufacturers during the past two years, with car production set to break all-time records in the years ahead.”

The SMMT predicts passenger-vehicle sales will rise 0.1% in 2013 to 2.015 million units, with diesels accounting for 52% of demand. New light-commercial-vehicle sales are forecast to rise 3.2% to 250,900.

Gazing deeper into its crystal ball, SMMT sees 2014 car sales surpassing the 2013 forecast by 2.3% to 2.062 million units, with LCV sales growing 4.5% to 262,300.

U.K. new-car sales have risen in every month since March for an 11-month total up 5.4% to 1,921,052 units and the market headed for its best result since 2008. LCV sales were down 5% to 265,959.

SMMT will release full-year 2012 results Jan. 7.

Everitt says buyers responded positively to fuel-efficient new models. The average carbon-dioxide emissions of a new car has fallen more than 3.5% in just a year to 133.2 g/km.

“All new models and technologies always cause a stir, and 2013 is set to satisfy early adopter motorists as more models join the electric-car market and the number of hybrid cars continues to grow,” Everitt says.

“New safety features will appear on more option lists and vehicle manufacturers will push the boundaries of technology and engineering to bring motorists even greater comfort and convenience.”