SMMT MOTOR INDUSTRY FACTS 2018
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1 SMMT MOTOR INDUSTRY FACTS 2018
2 WHAT IS SMMT? The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations in the UK. Its resources, reputation and unrivalled automotive data place it at the heart of the UK automotive industry. It undertakes a variety of activities to support and represent the interests of the industry and has a long history of achievement. Working closely with member companies, SMMT acts as the voice of the UK motor industry, supporting and promoting its interests, at home and abroad, to government, stakeholders and the media. SMMT represents more than 800 automotive companies in the UK, providing them with a forum to voice their views on issues affecting the automotive sector, helping to guide strategies and build positive relationships with government and regulatory authorities. To find out how to join SMMT and for more information, visit or membership@smmt.co.uk For media enquires please visit or communications@smmt.co.uk WHAT IS SMMT? 02
3 CONTENTS UK AUTOMOTIVE AT A GLANCE 4-5 UK AUTOMOTIVE INDUSTRY 6 UK automotive employment 6 UK automotive: background 7 MANUFACTURING 8 UK automotive manufacturing 8 UK car manufacturing 9 UK car exports 10 Global automotive manufacturing 11 Map: UK automotive manufacturing sites Commercial vehicle manufacturing 15 Engine manufacturing 16 Digitalisation of automotive manufacturing 17 UK AUTOMOTIVE SUPPLY CHAIN 18 UK AUTOMOTIVE AND THE EU 19 A DAY IN UK AUTOMOTIVE 20 REGISTRATIONS 21 New car registrations 21 Changing consumer tastes 22 Registrations by sales type 23 Registrations by segment Commercial vehicle registrations 27 VEHICLES ON THE ROAD UK automotive aftermarket 30 ENVIRONMENT AND AIR QUALITY Environment CO 2 31 Environment Air Quality 32 Environment WLTP and RDE 33 CONNECTED CARS SMMT GROUP 37 CONTENTS 03
4 UK AUTOMOTIVE AT A GLANCE Commercial vehicle manufacturers 82 billion UK automotive turnover 2,540,617 New cars registered in Countries importing UK-built vehicles UK AUTOMOTIVE AT A GLANCE Engine manufacturers 1,334,538 Cars exported in ,000 People employed across UK Auto Specialist car manufacturers million Cars currently on UK roads 1,671,166 Cars built in ,500 Suppliers 20 78,219 Commercial vehicles built in ,722,325 Engines built in
5 UK AUTOMOTIVE EMPLOYMENT 856,000 people employed across UK automotive 186,000 people directly employed in manufacturing 78,480 young people began engineering and manufacturing apprenticeships in 2016/7 (Semta) 25,000 new jobs to be created in automotive manufacturing 41,000 people employed in UK motorsport 25,000 are engineers (Motorsport Industry Association) UK AUTOMOTIVE EMPLOYMENT 06
6 UK AUTOMOTIVE: BACKGROUND In 2017 the UK automotive manufacturing industry Turned over 82 billion Invested 3.65 billion in R and D Invested 4 billion net capital Added 20.2 billion in value to the UK economy Exported products worth 44 billion, accounting for 12.8% of the UK s total export goods UK AUTOMOTIVE: BACKGROUND Source: 2017 UK Automotive Sustainability Report 07
7 UK AUTOMOTIVE MANUFACTURING Top fives in production 2017 Cars by brand Make Volume Jaguar Land Rover 532,107 Nissan 495,206 BMW 218,885 Honda 164,160 Toyota 144,077 Cars by model Model Volume Nissan Qashqai 346,771 MINI 218,885 Honda Civic 122,885 Toyota Auris 119,020 Nissan Juke 104,770 Commercial vehicles by brand Make Volume Vauxhall 59,795 Leyland Trucks 15,323 Alexander Dennis 1,734 Dennis Eagle 890 Wrightbus 303 UK AUTOMOTIVE MANUFACTURING 08
8 UK CAR MANUFACTURING UK car manufacturing 2,000,000 1,500,000 1,000, ,000 0 RECORD HIGH ,671, M cars built in the UK in 2017, the SECOND BIGGEST OUTPUT since the turn of the century UK car manufacturing 2017 vs 2016 YTD 2016 YTD 2017 % Change Total 1,722,698 1,671, % Home 373, , % Export 1,349,443 1,334, % % export 78.3% 79.9% UK CAR MANUFACTURING 09
9 UK CAR EXPORTS 1.33m cars manufactured for export in 2017 UK CAR EXPORTS 8 out of 10 cars made in the UK are exported The UK exports to over 160 markets worldwide THE UK EXPORTS TO 160 COUNTRIES WORLDWIDE TOP EXPORT DESTINATIONS FOR UK CARS Worldwide EU EU 53.9% JAPAN 2.4% Germany US 15.7% CANADA 2.1% Italy CHINA 7.5% SOUTH KOREA 1.6% France AUSTRALIA 2.9% RUSSIA 1.2% Belgium TURKEY 2.6% ISRAEL 0.9% Spain 10
10 GLOBAL AUTOMOTIVE MANUFACTURING Top 15 global automotive manufacturers in 2017 Rank Country Cars Commercial vehicles Total % change 1 China 24,806,687 4,208,747 29,015, % 2 USA 3,033,216 8,156,769 11,189, % 3 Japan 8,347,836 1,345,910 9,693, % 4 Germany 5,645, ,645, % 5 India 3,952, ,346 4,782, % 6 South Korea 3,735, ,514 4,114, % 7 Mexico 1,900,029 2,168,386 4,068, % 8 Spain 2,291, ,843 2,848, % 9 Brazil 2,269, ,204 2,699, % 10 France 1,748, ,000 2,227, % 11 Canada 749,458 1,450,331 2,199, % 12 Thailand 818,440 1,170,383 1,988, % 13 UK 1,671,166 78,219 1,749, % 14 Turkey 1,142, ,825 1,695, % 15 Russia 1,348, ,264 1,551, % Top 10 European automotive manufacturers in 2017 Rank Country Cars Commercial Vehicles Total % change 1 Germany 5,645, ,645, % 2 Spain 2,291, ,843 2,848, % 3 France 1,748, ,000 2,227, % 4 UK 1,671,166 78,219 1,749, % 5 Czech Rep. 1,413,881 6,112 1,419, % 6 Italy 742, ,568 1,142, % 7 Slovakia 1,001, ,001, % 8 Poland 514, , , % 9 Hungary 502,000 3, , % 10 Belgium 336,000 43, , % GLOBAL AUTOMOTIVE MANUFACTURING 11
11 UK AUTOMOTIVE MANUFACTURING Key UK manufacturing sites Key Manufacturer Location Sector Model 1 Alexander Dennis Falkirk and Guildford 2 Aston Martin Gaydon Car 3 Bentley Crewe Bus and coach Car and engine Enviro bus range Vanquish, DB11, Rapide S, V12 Vantage S and V8 Vantage Bentayga, Continental Flying Spur and Mulsanne 4 BMW Hams Hall Engine Engine range 5 Caterham Dartford Car Seven 6 Cummins Darlington Engine Engine range 7 Dennis Eagle Warwick CV N and W truck range 8 Euromotive Hythe CV Minibus range 9 Ford Bridgend and Dagenham 10 Honda Swindon Engine Car and engine Engine range Civic and Civic Type R 11 Infiniti Sunderland Car Infiniti Q30 There are more than 2,500 automotive component providers in the UK In 2017 UK automotive manufacturers produced 1,671,166 vehicles In ,722,325 engines were built in the UK UK AUTOMOTIVE MANUFACTURING Jaguar Land Rover Castle Bromwich and Wolver hampton Car and engine Engine range Jaguar: F-Type, XE, XJ, XF 13 Jaguar Land Rover Solihull and Halewood Car Land Rover: Discovery, Discovery Sport, Range Rover, Range Rover Sport, Range Rover Velar and Evoque 1 14 John Dennis Coachbuilders Guildford CV Fire vehicles 15 Leyland Trucks Leyland CV CF, LF and XF truck range 16 Lotus Norwich Car Elise, Evora and Exige 17 LEVC Coventry CV TX Taxi McLaren Automotive Woking Car 540, 570, 650, 675 and P Mellor Rochdale Bus and coach Accessible coach range MINI Oxford Car 21 Minibus Options Whaley Bridge Bus and coach MINI 3-Door Hatch, MINI 5-Door Hatch, MINI Convertible, MINI Clubman, Countryman, John Cooper Works and Mini Electric Minibus range Morgan Malvern Car 23 Nissan Sunderland Car and engine 3 Wheeler, 4/4, Plus 4, V6 Roadster Juke, LEAF and Qashqai Optare Leeds 25 Plaxton Scarborough Bus and coach Bus and coach Solo, Tempo and Versa bus range Cheetah, Elite, Elite I, Leopard, Panorama DD, Panther, Panther LE, coach bodies and Enviro bus range Rolls-Royce Goodwood Car Cullinan, Dawn,Ghost, Phantom and Wraith 27 Toyota Burnaston Car and engine Auris and Avensis 28 Toyota Deeside Engine Engine range 29 Vauxhall Ellesmere Port Car Astra 30 Vauxhall Luton CV Vivaro van 31 Warnerbus Dunstable 32 Wrightbus Ballymena (NI) Bus and coach Bus and coach Minibus range Bus range 14
12 COMMERCIAL VEHICLE MANUFACTURING UK Commercial Vehicle manufacturing volumes: 2014 to ,869 UK Commercial Vehicle manufacturing 2016 vs , , % Change Total 93,924 78, % Home 39,102 29, % Export 54,842 48, % % export 58.4% 62.5% ,219 Proportion of British-built CVs exported to global markets rose to 62.5% in 2017 the largest proportion in eight years 94.1% of CVs produced for international markets, the majority bound for the EU COMMERCIAL VEHICLE MANUFACTURING 15
13 UK ENGINE PRODUCTION Record engine production in million units 8,000 jobs in UK light vehicle engine production 3,350 jobs reliant on UK diesel engine production 8.5 billion turnover value in light vehicle engine production Petrol total production 1,691, Total production 2,722,325 Diesel total production 1,030,900 UK ENGINE PRODUCTION 16
14 DIGITALISATION OF AUTOMOTIVE MANUFACTURING The digital revolution of the automotive industry is already underway. Vehicle manufacturers and suppliers are benefitting from increased productivity, greater flexibility and shorter times to market. REDUCED PARTS INVENTORY BY UP TO 20% BENEFIT TO SUPPLIERS 2.6 billion INCREASED PRODUCTIVITY BY UP TO 5% MACHINE DOWNTIME REDUCED BY UP TO 40% BENEFIT TO VEHICLE MANUFACTURERS 4.3 billion BENEFIT TO WIDER ECONOMY 1.7 billion TIME TO MARKET REDUCED BY UP TO 25% TOTAL CUMULATIVE ECONOMIC BENEFIT BY billion Source: SMMT and KPMG report The Digitalisation of the UK Automotive Industry (2016) DIGITALISATION OF MANUFACTURING 17
15 UK AUTOMOTIVE SUPPLY CHAIN 82,000 people employed in the UK supply chain 4bn of unfulfilled opportunities for domestic Tier 1 suppliers BODY PAINT POWERTRAIN ASSEMBLY INSPECTION 2,500+ automotive suppliers in the UK 44% average UK content in British-built cars (up from 36% in 2011) 4.9bn added value generated by suppliers each year 18 of the world s 20 biggest automotive suppliers have a UK base UK AUTOMOTIVE SUPPLY CHAIN 18
16 UK AUTOMOTIVE AND THE EU The European automotive industry is deeply integrated with: 78.6% of 2017 UK car registrations imported originating from the EU ON EXPORTS WTO WORLD TRADE ORGANISATION car exports to the EU only 53.9% of 2017 UK assembled car exports heading to EU 1.8bn COST 79% of imported components coming from the EU AT LEAST 10% OF PEOPLE EMPLOYED IN THE UK AUTOMOTIVE MANUFACTURING SECTOR ARE FROM ELSEWHERE IN THE EU WTO WORLD TRADE ORGANISATION 65% of British-built components exported to the EU car imports from the EU only ON IMPORTS 2.7bn COST UK AUTOMOTIVE AND THE EU 19
17 A DAY IN UK AUTOMOTIVE 1100 EU TRUCKS deliver to UK car and engine plants Components WORTH 35m delivered just in time from EU 6400 CARS manufactured ENGINES manufactured 1300 CARS distributed to UK dealers 4700 ENGINES delivered to UK factories A DAY IN UK AUTOMOTIVE 5100 CARS exported worldwide 5700 ENGINES exported worldwide Import figures based on SMMT estimates; output figures: SMMT from production and export international exchange data 20
18 NEW CAR REGISTRATIONS Annual New Car Registrations 2001 to ,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 2,540,617 New car registrations by fuel type 2017 vs DIESEL PETROL AFV DIESEL PETROL 119,821 1,065, ,413 1,354,917 1,419,953 Top 10 UK sellers in 2017 Model Volume 1 Ford Fiesta 94,533 2 Volkswagen Golf 74,605 3 Ford Focus 69,903 4 Nissan Qashqai 64,216 5 Vauxhall Corsa 52,772 6 Vauxhall Astra 49,370 7 Volkswagen Polo 47,855 8 MINI 47,669 REGISTRATIONS AFV 16,641 9 Mercedes-Benz C Class 45, Mercedes-Benz A Class 43,717 21
19 CHANGING CONSUMER TASTES 1 Changing tastes in car colour: Top Shift in market segment 2017 vs 2007 MINI +220% ,512 / ,846 DUAL PURPOSE % ,290 / ,412 EXECUTIVE +17.9% ,468 / ,168 LOWER MEDIUM +1.37% SUPER MINI -3.36% MULTI PURPOSE ,262 / , ,351 / , ,859 / ,039 CHANGING CONSUMER TASTES SPECIALIST SPORTS % ,731 / ,552 LUXURY SALOON % ,120 / ,191 UPPER MEDIUM % ,414 / ,960 22
20 REGISTRATIONS BY SALES TYPE 2017 registrations by sales type Private 44.2% Fleet 51.9% Business 3.8% Top five new car registrations in 2017 by sales type Private Model Volume Ford Fiesta 56,400 Volkswagen Polo 30,487 MINI 28,188 Ford Focus 27,771 Volkswagen Golf 25,380 Fleet Model Volume Volkswagen Golf 47,865 Ford Focus 42,130 Nissan Qashqai 41,685 Ford Fiesta 38,132 Vauxhall Astra 37,510 Business Model Volume Vauxhall Corsa 13,857 Vauxhall Viva 6,940 Vauxhall Astra 3,615 Vauxhall Mokka X 3,436 Mitsubishi Outlander 2,901 Business If the vehicle is being registered by a company that operates up to 24 vehicles, it is designated a business sale. This includes dealer demonstrators. Fleet If the vehicle is being registered by a company that operates a fleet of 25 or more vehicles, it is designated a fleet sale. This includes dealer demonstrators and Motability-leased vehicles. Private If the vehicle is being registered primarily for the personal use of a private individual, it is designated a private sale. REGISTRATIONS BY SALES TYPE 23
21 REGISTRATIONS BY SEGMENT Top cars registered by segment Supermini Mini Model Volume Segment share Model Volume Segment share Hyundai i10 25, % Ford Fiesta 94, % Volkswagen up! 13, % Vauxhall Corsa 52, % Vauxhall Viva 9, % Volkswagen Polo 47, % Suzuki Celerio 6, % MINI 47, % Skoda Citigo 6, % Nissan Juke 38, % Segment total: 68,846 Segment total: 748,333 Lower Medium Model Volume Segment share Volkswagen Golf % Ford Focus % Nissan Qashqai % Vauxhall Astra % Mercedes A-Class % Segment total: 728,116 REGISTRATIONS BY SEGMENT 24
22 REGISTRATIONS BY SEGMENT Top cars registered by segment Upper Medium Model Volume Segment share BMW 3 Series 35, % Executive Model Volume Segment share Mercedes-Benz C Class 45, % Luxury Model Volume Segment share Mercedes-Benz S Class 2, % REGISTRATIONS BY SEGMENT Audi A4 25, % Mercedes-Benz E Class 26, % BMW 7 Series 2, % BMW 4 Series 22, % BMW 5 Series 19, % Jaguar XJ % Skoda Octavia 20, % Audi A6 12, % Bentley Continental % Vauxhall Insignia 16, % Jaguar XF 7, % Audi A % Segment total: 242,960 Segment total: 123,168 Segment total: 9,191 25
23 REGISTRATIONS BY SEGMENT Top cars registered by segment Dual Purpose Specialist Sports Model Volume Segment share Model Volume Segment share Audi TT 7, % Kia Sportage 39, % Volkswagen Scirocco 4, % Ford Kuga 39, % Mazda MX-5 4, % Hyundai Tucson 29, % Mercedes SLC 3, % Volkswagen Tiguan 29, % Porsche 718 2, % Range Rover Evoque 24, % Segment total: 47,552 Segment total: 460,412 MPV Model Volume Segment share Ford C-MAX 12, % Vauxhall Zafira Tourer 12, % Citroen C4 Picasso 11, % Ford S-MAX 5, % Ford B-MAX 5, % Segment total: 112,039 REGISTRATIONS BY SEGMENT 26
24 COMMERCIAL VEHICLE REGISTRATIONS Van registrations 2011 to , , % 1.0% , % 13.1% 16.7% 200, % 100, Heavy Goods Vehicle registrations Rigids Artics Bus and coach ,535 19,510 7,666 Growth v ,149 commercial vehicles were registered in % 0.9% 12.7% COMMERCIAL VEHICLE REGISTRATIONS 27
25 VEHICLES ON THE ROAD More than 8.1 million used cars sold in % 2.8% 1.2% -1.3% VEHICLES ON THE ROAD CARS 34,686,328 VANS 4,299,828 BUS & COACH 86, Year Cars (millions) The average car on the road in the UK is silver from the Supermini segment and 7.8 years old 110,684 plug-in cars TRUCKS 602,799 39,675,562 vehicles on UK roads Birmingham has the most electric and plug-in cars in the country at 8.7% of the national total
26 UK AUTOMOTIVE AFTERMARKET The Importance of the Aftermarket to the UK Economy 12.2 billion contribution to UK economy Services more than 30 million vehicles a year 21.1 billion revenue of UK aftermarket 345,600 jobs supported average annual spend per car UK AUTOMOTIVE AFTERMARKET Source: SMMT and Frost & Sullivan Reports: The Importance of the UK Aftermarket to the UK Economy (2017) 30
27 ENVIRONMENT CO2 Emissions reduction CO 2 g/km Fleet average CO2 emissions for newly registered cars rose 0.8% in UK ENVIRONMENT EU target g/km 100 EU target 95 *On average, new models introduced in 2017 were 12.6% lower in CO2 emissions compared with ones they replaced Source: SMMT New Car CO2 Report
28 ENVIRONMENT AIR QUALITY A Euro-VI bus emits 95% less NOx on the road than a Euro-V bus Source: Transport for London Reduction in diesel car NOx emissions ENVIRONMENT 0.5 g/km 0.08 g/km 32
29 CAR EMISSIONS TESTING New WLTP test from September 2017 Introduced in 2017, the WLTP (Worldwide Harmonised Light Vehicle Test Procedure) was introduced to replace the old NEDC lab test. A lab test to measure fuel consumption, CO 2 and pollutant emissions from cars: Test cycle data based on real-driving data Variety of driving phases tested Powertrain configuration of each car tested for the car s lightest and heaviest version Why do we still need a lab test? The new WLTP test is much more representative and lab tests allow for a standardised, repeatable testing model which enables comparisons of one car s emissions to the next. RDE The Real Driving Emissions (RDE) test measures pollutants while a car is driven on public roads, complementing the WLTP lab test. Portable Emission Measuring System (PEMS) measures data collected while car is driven in a variety of conditions: RDE provides a snapshot of a vehicle s performance on the road Low speed (urban roads) Medium speed (rural roads) High speed (motorways) Low and high altitudes Year-round temperatures Additional vehicle payload Different gradients ENVIRONMENT WLTP 33
30 CONNECTED AND AUTONOMOUS VEHICLES UK social and economic impact of connected and autonomous vehicles 51 Billion Value added annually by 2030 (at 2014 prices) Top 5 benefits of CAVs Reduced stress of driving Ability to rest on longer journeys Fewer accidents Lower insurance costs Ability to travel at preferred times CAVs could give 1 million UK people better access to higher education 320,000 Additional jobs created, 25,000 Jobs in automotive manufacturing created by /10 people * with limited mobility will have an improved quality of life *when surveyed CONNECTED AND AUTONOMOUS VEHICLES Sources:SMMT and KPMG report, 2014: Connected and Autonomous Vehicles: The UK Economic Opportunity and SMMT and PwC report, 2017: CAVs: Revolutionising Mobility in Society 34
31 CONNECTED AND AUTONOMOUS VEHICLES 7IN10 new cars available with driver assistance systems Distance Indication helps drivers keep a safe following distance from the vehicle ahead. 66.8% of new cars offered with a self-activating safety system Auto High Beam detects headlights and tail lights of other vehicle and automatically switches to high or low beams. 58.8% of new cars are available with Park Assist technology Park Assist automatically steers the car into and out of parallel and bay parking spaces. 1.8 million buyers a year able to benefit from collision avoidance technology Forward Collision Warning warns drivers of an imminent frontal collision. 36.2% of new cars are available with Adaptive Cruise Control Adaptive Cruise Control automatically adjusts speed to maintain a safe distance from vehicles ahead. 42.1% of new cars are available with Overtaking Sensors Blind Spot Information System helps detect vehicles in driver s blind spot when changing lane. CONNECTED AND AUTONOMOUS VEHICLES Source: Latest autonomous technology vehicle content analysis conducted by JATO Dynamics in September and based on SMMT new car registration data for
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33 SMMT GROUP SMMT Industry Forum Industry Forum was formed in 1994, initially as a unique collaboration between leading vehicle manufacturers, SMMT and government to improve the performance and competitiveness of the UK s automotive supply chain. Continued measurable success has led to sustained growth into many other sectors including aerospace, construction, domestic appliances, electronics and food. Industry Forum now provides support to blue chip organisations in more than 30 countries across five continents. The Motor Ombudsman The Motor Ombudsman is the automotive dispute resolution body. Fully-impartial, it is the first ombudsman to be focused solely on the automotive sector, and self-regulates the UK s motor industry through its comprehensive Motor Industry Codes of Practice which have each been approved by the Chartered Trading Standards Institute s Consumer Codes Approval Scheme (CCAS). DISCL AIMER This publication contains general infor mation and, although SMMT endeavours to ensure that the content is accurate and up-to-date at the date of publication, no representation or warranty, express or implied, is made as to its accuracy or completeness and therefore the information in this publication should not be relied upon. Readers should always seek appropriate advice from a suitably qualified expert before taking, or refraining from taking, any action. The contents of this publication should not be construed as advice or guidance and SMMT disclaims liability for any loss, howsoever caused, arising directly or indirectly from reliance on the information in this publication. Any use of data should be credited to SMMT. SMMT GROUP 37
34 THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED 71 Great Peter Street, London, SW1P 2BN Tel: +44 (0) :SMMT May 2018
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