UK Automotive is built on firm foundations with a rich heritage of innovation and cutting-edge engineering. It is agile, flexible and fundamentally competitive, with world-leading levels of efficiency. In 2019 the sector generated more than £100 billion in total trade for the third consecutive year, highlighting its role as a global trading powerhouse, and held the lead as Britain’s biggest exporter of goods by a considerable margin. Exporting vehicles, engines and components to more than 150 countries worldwide across all continents, the sector is key to the UK’s international trade agenda and supports thousands of highly skilled, high value jobs across all regions.
The vast majority of UK-produced automotive goods exported overseas are destined for the EU and some seven out of 10 vehicles bought by UK consumers come from factories in the bloc. Securing a comprehensive free trade agreement with our largest trading partner is paramount. The sudden imposition of tariffs, just as the sector strives to restart and recover from the current crisis, would be catastrophic. Furthermore, if we are to retain the preferential trade we currently enjoy with other key markets around the world after the transition period ends, and capitalise on future global growth, we need deals with these other countries agreed in parallel.
How quickly automotive recovers from the shock of the pandemic will be decisive for Britain’s overall recovery and future prosperity, global influence and reputation. As well as potentially creating further skilled jobs, the sector can lead the world in technological development and drive the transition to a zero-carbon economy.
As the coronavirus crisis begins to dial back and government helps to nurture the nation back into economic growth, it is UK Automotive that can be an engine room of success. The next few months will be critical for determining its future. This report sets out a comprehensive analysis of the sector, the value it creates for the economy and its importance to future trade. Providing a detailed picture of future growth markets and the UK’s current ability to serve them, it sets out key recommendations to help policymakers and industry grow existing trade relationships and unlock new markets – keeping this vital sector at the heart of the UK’s future trade strategy.