Investment in car production facilities in the UK of over £7
billion and the added popularity of premium cars abroad over the past two years
helped sales boost to 1.2% in 2014.The British Society of Motor Manufacturers
and Traders (SMMT) states that “demand for premium brands, such as Jaguar Land
Rover, had helped boost annual sales […]”. However, overall number of vehicles
exported fell. In the article, Mike
Hawes, SMMT´s chief executive, states that "[…] the industry has overcome
various challenges, including slower than expected EU recovery and weakness in
some global markets.", which makes a 1.2% growth in UK car manufacturing,
although a relatively small figure, representing a successful year when placed
in context.
3 comments:
Rodrigo, do you think this is sustainable growth in the UK? I am weary of the growth being driven by luxury products. I anticipate that the luxury car market has a relatively elastic demand curve, and the increase is due to the recent economic upswing.
UK car export has been in a decline since past couple of decades. It has lost its place to Japan and other European countries and might not be able to redeem its stature of 'hub' of the car world any time soon.
Personally, I believe that this positive index is the representation of a gradual recovery in UK´s economy. While the tight wallets of the majority of the population are generally cause for concern in a bad economy, the spending of the wealthy has continued to contribute to overall economic recovery. Luxury clients have decided to buy again, regularly, as brands continue to surprise with innovative marketing ideas. The recession years sparked some of the most creative marketing strategies by luxury brands, in a bid to get consumers back into stores so I think it comes as no surprise that Britain´s first steps towards recovery come as being expressed by a small increase in premium cars sales.
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