UK car market booms in March

UK car production rose by 12 per cent in March, with the number of cars being exported abroad cited as the main factor behind the increase.

Figures released by Society of Motor Manufacturers & Traders (SMMT) yesterday (24 April) revealed that UK manufacturers produced 142,158 units last month, bringing market growth for 2014 up to 2.9 per cent. Nearly 80 per cent of these vehicles were exported for global markets.

As the UK plays a more substantial role in the European car market it is important that any car dealership that is trading vehicles overseas has this covered in their motor trade insurance policy; international business activity carries different risks and challenges, this will need to be reflected in a more expansive insurance policy.

Mike Hawes, chief executive of the SMMT, commented on the positive findings. “The 12 per cent growth in UK car production in March is a significant step forward after a period of product changes at the start to the year,” he said.

“After several years in the doldrums, European demand for new cars is now picking up with growth in the last seven months. This is a welcome boost for the UK’s volume manufacturers for whom Europe is the key market.”

In further good news this week, a Glass’s report revealed that new car registrations in March were the highest they have been since 2004. The study supports figures already released that show the UK car market is thriving as the country’s economy slowly recovers.

As ever, it is important to remember that the potential surge in business for used car dealerships – as drivers look to trade in older vehicles to upgrade to newer models – might require them to update their motor trade insurance to cover them for the increased activity.