Over the last few decades we have seen a massive move in production out of Europe and towards countries like India and in the Far East where production costs are cheaper and labour is much easier to come by. Years ago, almost all cars that were exported from these countries went to the UK, Germany and the USA; more often than not the places where they were designed in the first place.
However, all of this movement, combined with wider economic trends, has had an interesting effect on the incomes on those in the Eastern Hemisphere and, lately we’ve seen an enormous amount of demand for automobiles coming in from China, India and the Middle East. Interestingly, it’s this demand, not local demand from the UK, that’s currently bolstering the British car industry.
According to industry experts, including BMW’s UK Managing Director Tim Abbot, the British car industry could well overtake France as the EU’s second-largest car manufacturing country as early as 2018. UK based brands like Jaguar, Land Rover and Nissan are gaining ground on their French cousins, Renault and Peugeot-Citroen.
The good news for the UK is that many of the car factories are approaching full capacity once again, with workers having plenty of orders to get on with. After the job losses across the UK in the automotive industry, particularly those at Honda in Swindon, it’s great to see Britain’s car manufacturers producing once again.
This boost isn’t just good news for those working in the automobile industry, sister industries like car insurance providers will also benefit from the increase in production. Though many of the vehicles produced in the UK will eventually end up being exported, having more production taking place within the EU makes it much easier the risk of different models and makes to be assessed. It also makes understanding crash-testing and test-driving a much easier process.
At present there’s a lot of speculation around the Eurozone, but Britain’s links with the Far East hopefully mean there’s a positive future for its car industry and, of course, the designers, mechanics and retailers that go with it.