Asia became the fastest-growing export market for the UK automotive sector last year, with the value of exported goods up 21% on 2016; however the EU remains by far its biggest customer, according to a new report.
As the UK agreed its transition deal with the European Union this weekend, fresh analysis from Santander and manufacturing organisation EEF found that the EU remains the largest export market for the UK in absolute terms, with 45% of UK exports destined for the bloc.
This compares to 18.3% to the US (equivalent to £7.3bn) and 11.3% to China (£4.5bn). In fact, eight out of the UK’s top 10 import markets are located in the EU, accounting for 84% of imports in 2017.
The UK car industry exported goods worth £40bn in total, making it the ninth largest car exporter in the world. The sector now accounts for 15% of total UK manufactured exports.
The West Midlands remains the centre of the industry, responsible for 50% of output and 36% of turnover.
Francesco Arcangeli, economist at the EEF, said: 'Despite the impressive growth, the UK is still lagging behind some international competitors in terms of productivity, particularly our German counterparts.
'Nevertheless, it is clear that the UK is home to world-leading automotive manufacturers, which are helping to boost productivity in local areas, and supporting these businesses as they invest for growth and expand further is absolutely key to the ongoing success of this vital UK industry.'
The report from Santander and the EEF found that in 2017, the UK automotive sector contributed £16.5bn in Gross Value Added (GVA) to the UK economy, growing by 1.2% in 2017.
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