Britain exported a record number of cars last year, marking a renaissance in the motor industry, according to the Society of Motor Manufacturers and Traders.

Almost 1.19m cars were shipped abroad in 2007 - a far cry from 2001, when fewer than 900,000 cars were sold in overseas markets amid concerns that Britain's refusal to sign up for the euro was threatening the industry's competitiveness.

Exports accounted for the bulk of UK car production of just over 1.5m vehicles, with overall output in the last quarter of the year climbing by more than a fifth - the strongest increase for more than two decades.

SMMT's chief executive, Paul Everitt, said: "Around 1.5m cars and 3m engines are produced in the UK each year, and these latest figures reinforce the UK's strength and breadth as a global manufacturing base."

Dave Osborne, the national secretary for the car industry at the Unite trade union, said: "These figures show what we have always said - that the skills and productivity are there in the UK car industry for it to be profitable and a world leader.

"Of course there will be arguments about whether membership of the euro has or hasn't been a factor but these figures show car companies should invest in the UK, not cut and run."

Everitt said there was a renaissance in the car making industry that should lead to a re-evaluation of the role of manufacturing in the UK economy. "Looking at areas [of the economy] where there is now concern, these are the areas we have been told were the future. We were told that this future was with service industries and we did not need to worry about manufacturing. I think it's time we looked once again at the value of manufacturing."

Everitt said two factors were helping the industry. "From a European perspective the exchange rate is particularly favourable for UK-based production." The more important factor, he said, was the array of "particularly attractive UK-produced" models from marques such as Bentley, Rolls-Royce and Aston Martin to Jaguar, Land Rover and the Mini along with volume market vehicles such as Nissan's Qashqai.

Nissan has had to step up investment in its Sunderland plant to increase production of the Qashqai and halt its exports to Japan in order to cope with demand from Europe, a Nissan spokesman said. "It's all down to getting the right models in the right plants."

Eric Wallbank, director of Ernst & Young's automotive team, said the production total was "a great result for the industry in the UK and demonstrates how robust the sector remains despite the demise of MG Rover and the closure of Peugeot's Ryton plant".

The SMMT also reported that commercial vehicle production was the best for almost a decade, with a total output of 216,000 vehicles, almost 8,000 up on the year.

The SMMT said it expected commercial vehicle production this year to be stable, with exports commanding the lion's share of the UK's van and truck output

Our Version

British car exports surge in 2007

Car exports from the UK made huge gains in 2007. British manufacturers achieved new record export levels, reports the Society of Motor Manufacturers and Traders.

The low value of the pound and new models helped to boost sales. Back in 2001, considerably less than 900,000 cars were shipped overseas; the new 2007 figures show that close to 1,190,000 vehicles were shipped out of the country.

The total car production for the year was around 1,500,000, with nearly 80% of the production leaving the country, a very clear indication of the strength of British car exports.

This resurgence is seen as a leading example for other manufacturers.  Just in the last quarter of 2007, production climbed by more than 20%, the largest increase in production for more than 20 years.

 “Around 1.5 million cars and 3 million engines are produced in the UK each year and these latest figures reinforce the UK strength and breadth as a global manufacturing base”, Paul Eviritt, SMMT’s chief executive, said.

 The United trade union stated, “These figures show what we have always said, that the skills and productivity are there in the UK car industry. We have the ability to be profitable and a world leader” and “of course, there will be arguments about whether membership of the Euro as hasn't been a factor. But these figures show that companies should invest in the UK, not cut and run.”

Paul Eviritt further stated, “Looking at areas of the economy, where there is now concern, these are the areas we have been told that this future was with service industries, and we did not need to worry about manufacturing.  I think it's time we looked once again at the value of manufacturing”

In addition, “from a European perspective, the exchange rate is potentially favourable for UK-based production. The more important factor, he said “was the particularly attractive UK-produced models from the marques such as Bentley, Rolls-Royce and Aston Martin to Jaguar, Land Rover and the Mini along with volume market vehicles such as Nissan's Qashai.”

The UK manufacturing arm of Nissan, based in Sunderland, has made significant increases in investment at its plant to deal with the increased demand.  And there's even been a halt in its exports to Japan to make way for this increased demand from Europe.