Report says luxury and niche car makers in the UK were responsible for 4% of total production last year yet accounted for 12% of the value because of their high price tags
Foreign Secretary David Lammy has hailed Britain’s luxury car makers as a “global success story”. He said: “These iconic brands are not just symbols of British excellence, they are exported around the world, delivering growth, innovation and skilled employment for the UK.”
His comments coincided with the launch of a report showing smaller volume car makers in the UK generate nearly £5billion a year of overseas sales and support 75,000 jobs. An event at the Foreign Office London showcased models from Aston Martin, Bentley, Lotus, McLaren, Morgan and the London Electric Vehicle Company. Mr Lammy said: “Britain’s luxury and performance car makers are a global success story.”
He went on: “As Foreign Secretary, I am determined that the Foreign, Commonwealth and Development Office becomes an engine for growth. Close partnership with key industries such as the automotive sector will be vital to delivering on this government’s Plan for Change”
The report from trade body the Society of Motor Manufacturers and Traders showed “small volume” car makers in the UK produced just over 31,000 vehicles last year, with 90% exported.
Manufacturers extend from sports car specialist Ginetta in Leeds, down to Rolls Royce in Goodwood, near Chichester, and from Lotus in Norfolk to Aston Martin, which has various sites, including a plant in the Vale of Glamorgan.
Mike Hawes, SMMT chief executive, said: “Britain’s luxury, performance and niche vehicle makers are exemplars of automotive design, engineering and manufacturing – and a quintessential British success story, the definition of ‘Made in the UK, Sold to the World’.”
However, its report found these firms – like the rest of the sector – faced a series of battles, including “volatile global trading conditions”. Luxury, high-performance and niche car makers have been among the hardest hit by Donald Trump’s tariffs on US imports.
While the President has agreed to lower the levy for UK manufacturers, it has not been finalised, leaving companies in limbo.
Mr Hawes said: “A successful sector would deliver the economic growth, well-paid jobs and exports that government craves, helping keep Britain firmly on the global automotive map.”
An industry insider said: “The government is working hard to get the deal over the line. We understand it is doing what it can but it needs action on both sides of the Atlantic”.
The report also says the “race to decarbonise, production cost pressures and the skills transition all threaten competitiveness and growth.”