An Overview of the UK’s Automotive Landscape
The UK automotive industry stands as a testament to the country’s prowess in manufacturing and technological innovation. In 2022, the industry reached an impressive turnover of £67 billion, contributing significantly to the UK economy. With the creation of 1,614,063 new cars, the sector has not only bolstered domestic economic activity but also marked its significance in global trade.
Employment and Economic Impact
A key aspect of the industry is its substantial contribution to employment. Approximately 780,000 people are employed across the UK automotive sector, with 182,000 of these directly engaged in manufacturing. This sector not only provides jobs but also pays annual salaries that are typically 14% higher than the UK average, underlining its importance in the national job market.
The Aftermarket’s Contribution
The UK automotive aftermarket, an often overlooked yet crucial component of the industry, contributed £12.4 billion to the UK economy and supported 330,000 jobs in 2020. The sector, with its £47.2 billion turnover, includes over 55,000 businesses and more than 25,000 MOT service and repair sites, underscoring its expansive reach and economic significance.
Manufacturing and Export Strength
In 2022, the UK produced 101,600 commercial vehicles and 775,014 cars, with a significant 60.2% of British-built commercial vehicles exported to global markets. This robust export activity, especially to the European Union, emphasises the UK’s strong position in the international automotive market.
Trade Hub Dynamics
The UK automotive sector stands as a £77 billion trade hub, with £32 billion worth of products exported in 2021. This immense trading activity not only highlights the sector’s economic importance but also its role in shaping the UK’s global trade dynamics.
Future Outlook: Connected and Automated Vehicles (CAVs)
Looking ahead, the potential impact of connected and automated vehicles (CAVs) on the UK economy is substantial. By 2030, CAVs are expected to contribute an additional £62 billion in economic growth, create over 420,000 new jobs (with 55% being high skilled), and significantly improve road safety by saving 3,900 lives and preventing 47,000 serious accidents.
In conclusion, the UK’s automotive industry is not only a significant contributor to the national economy but also a beacon of innovation and technological advancement. With its vast employment opportunities, substantial economic contributions, and future growth potential, the sector continues to be a key pillar of the UK’s industrial landscape. For more detailed insights into this dynamic sector, the SMMT Motor Industry Facts report offers an extensive overview of the industry’s current state and future prospects.