Driving economic growth with automotive exportation
The automotive industry is one of the most significant sectors in the UK. Manufacturing related to the automotive industry is estimated to contribute £14 million to the economy. This industry is a huge employer with 780,000 people in jobs related to vehicle manufacturing.
Not only is it a domestic powerhouse, but the majority of cars are exported overseas. 8 out of 10 cars are exported to over 130 countries, making UK cars a global product.
The link between automotive exports and economic growth
As the UK economy is heavily supported by the automotive industry, the export side of things is crucial. In 2022, around £34.4 billion was exported from the motoring industry. Tariff-free trade between the UK and the European Union has led to British dominance in exports to Member States, especially for electric vehicles. The large amount of exports from the automotive industry encourages a flow of money into the UK, encouraging spending from average consumers.
By organising effective and reasonable vehicle air freight, vehicles in various stages of assembly can be transported across the world in a timely manner. This means that funds can quickly be pumped back into the UK economy.
The ripple effect on supporting industries
Success in the automotive sector ripples out to a whole host of different industries. As well as the industry itself being a large employer across the country, it ensures jobs are available in related industries.
Materials that are used in vehicles need to be made, so a healthy manufacturing industry is helpful. There are also transport drivers who carry parts and materials between factories up and down the country. Both of these roles benefit directly from supporting the automotive industry.
As technologies diversify, so will the applications in a car. This allows engineers, software developers, programmers and development teams to grow and expand, creating jobs and keeping people employed. The more people are employed, the more money is going through the UK economy in both spending and receiving.
Future trends and prospects
As the automotive industry continues to recover after the challenges of lockdown, looking to the future is inevitable.
With the government’s ban on the production of new petrol and diesel cars recently moved to after 2035, a lot of manufacturers will be looking to evolve their plants to have the ability to make electric cars. This will mean a lot of change in certain sectors, making it a challenging period for some.
Another challenge that is apparent across the sector is the increasing preference for pre-owned cars. As the cost of living crisis rages on, people are finding that they simply cannot afford a newly built car. This could lead to a slowing down of domestic buying which would affect the UK economy.
Self-driving, or autonomous, cars are becoming a reality as well, which is an exciting prospect. This will give the software developers a chance to shine and make our roads safer as autonomous vehicles may do.
