India among top 10 Asian export markets for UK-built cars
In 2014, Only UK bought more British-built cars than China. Exports to China is greater than combined UK exports to Brazil, India and Russia. China’s sales trend reflects substantial growth in the wider Asian market. UK-built cars exported to Asia has trebled in five years (220,682 in 2014 over 60,804 in 2009). Asia is UK automotive industry’s largest export market after Europe. 18.5 pct of all cars built in UK are used in the Asia region.
For 2014, UK automotive exports accounted for 11.2 pct of export generated revenue, valued at £26.2 billion. UK exported 1,195,190 cars to more than 100 countries at 54.7 pct increase over 2009, when 772,210 cars were exported.
Mike Hawes, SMMT Chief Executive says economic growth in Asia in these five years has resulted in increased demand for new cars. Demand for high-quality premium vehicles with a strong brand heritage puts UK in a prime position to cater to an emerging market owing to quality of globally competitive products. UK automotive sector is important to the UK economy leasing to highest share of UK exports in history.
Significant investment in British auto manufacturers (Aston Martin, Bentley, Jaguar Land Rover, Mini, McLaren and Rolls-Royce) means 60 pct of all UK-built cars on offer are from premium luxury brands. Average export value of UK-built cars has increased from £10,200 in 2004 to £21,900 in 2014 in the Asian market. Growth is ubiquitous in almost all Asian export markets since 2009. South Korea is now UK’s eighth largest export market outside of Europe up from 16th in 2009 at 13,337 vehicles over 2,315 units in 2009, equating to 476.1 pct growth.
Growth in India equates to 817.8 pct at 2,836 cars in 2014, over 309 cars exported in 2009. Jaguar Land Rover sold 226 cars in India in FY 2009-10. Export volumes remain modest in a number of Asian markets, owing to high import duty. The situation is similar in India and has resulted in driving local production. However, significant growth in cars exported to most Asian countries underlines a strong demand for UK-built. UK car exports to India places the country as one of UK’s Top 10 Asian export markets. Export of UK-built cars to India were higher than in Kuwait (2,548), Hong Kong (2,362), and Qatar (2,085) in 2014.