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UK Car Export Touched New Height Last Year
Mar 03, 2008

UK car exports has increased substantially in past few years due to decline in value of Pound and rising demand of Japanese cars that have increased the car export to European countries.
 
In the UK, record units of cars produced just for export purpose to other countries last year. In total, the car production amounted to 1.5 Million in 2007, as per the news published by IET.
 
Out of total cars manufactured, almost 80% were meant for export, which signifies the power of British car export business over other countries. Moreover, car exports grew by 7.2% in 2007 in comparison to 2006. In addition, the commercial automobile output in 2007 was highest since 1998 with 215,000 vehicles produced out of which 50% was meant for export.
 
Dave Osborne, National Secretary, Car Industry, Unite Trade Union, stated, "These figures show what we have always said - that the skills and productivity are there in UK car industry for it to be profitable and a world leader”, as published by Ineedcontent.
 
The major reason for such huge increase in car export is that Japanese car producers in the UK have enhanced their production capacity to gain share in exports to European countries. The demand for Japanese vehicles in European countries is growing because of elevation in fuel prices and Japanese cars consume less fuel.
 
The appreciation in value of Euro against Pound additionally enhanced the UK vehicle exports as the majority of cars are exported to European countries. From European viewpoint, the currency exchange rate is predominantly positive for manufacturers based in the UK. Strong Euro is making car import from the UK cost effective for other European nations.
 
One more significant factor that augmented export of vehicles from the UK was the range of striking UK-manufactured models from several top car producers such as Ford and Nissan. Moreover, the new models like new Audi A4 and Chrysler Sebring have pushed the UK cars demand overseas.
 
As per a Senior Research Analyst at RNCOS, “Considering industrial sectors where an intense approach is required, automobile industry is one area where country is doing very well. Increase in number of exported cars demonstrates that car producers should make investments in this sector. Alternatively, increased demand for Japanese cars in Europe creating troubles for local automobile industry. Beyond all, the recent statistics support the UK's latent as international manufacturing base.”

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