Clear signs of economic recovery are now showing in the manufacturing sector.
Whilst GDP is still flat-lined across the economy as a whole due to the continued poor performance of the Banking sector and the building sector, there are signs of substantial recovery in other sectors and this is leading to a growing confidence in the UK economy as a whole. The UK automotive industry has an annual turnover of about £49bn, accounting for more than 10% of total exports, and employs 700,000 people.
UK new car sales jumped to 162,288 last month, a 7.9% rise compared with May 2011, according to the Society of Motor Manufacturers and Traders (SMMT), who’s Chief executive, Paul Everitt, in an interview with the BBC said that new fuel efficient vehicles were helping to increase sales, and that confidence was returning to the economy.
The sharp rise in May brings the total for 2012 up to 868,166 – a 2.6% rise over the same period last year, with the fleet market up 4.8%, ending a three-month decline.
According to Paul Everitt, “May’s 7.9% increase in new car registrations is good news for the motor industry and the UK economy,” and “The consistent climb in new car registrations during the first five months of the year suggests that confidence is returning, despite financial uncertainty in the eurozone.”
Green manufacturing is key to the growth!
The most significant change as the new cars are purchased has been in the shift away from conventional vehicles and towards lower emissions vehicles – hybrid petrol-electric, electric-only, and range-extended cars – which rose 31.8% in May, albeit from a low base.
Sales in this sector increased to 12,145 for 2012, compared with 11,347 for the same period last year, with the bulk of these being hybrid petrol-electric cars.
But new models, such as the Nissan Leaf and Mitsubishi i-MiEV electric-powered cars, have also helped boost the market, and Vauxhall and Chevrolet have released “range-extended” electric-powered cars that use petrol generators to increase the range of their electric batteries.
According to Jonathan Visscher of SMMT “Every car manufacturer is going to have a hybrid model on its lists by the end of this year, even Ferrari.”
Full story: BBC News