British luxury car exports to India on rise
India has proved to be a sturdy market for British luxury cars as latest figures released by the UK automotive industry this week indicate a spike in exports from the UK to India.
India is now the seventh largest Asian market for UK car exports, according to the latest figures.
Indian request for UK’s premium cars rose 8.3% in the very first half of 2017. Over the same period, the number of Indian-built models registered by British buyers rose by almost half (48.6%) to 21,135 units.
"The request in India tends to be in the premium segment and the latest figures reflect the growing attraction of Britain’s luxury brands in the country," said Mike Hawes, Chief Executive of the UK’s Society of Motor Manufacturers and Traders (SMMT).
"The UK and Indian automotive industries share a rich heritage of trade and investment and strengthening this relationship through mutually-beneficial trade deals in the future is of the utmost importance," he said.
Exports to India grew to 1,650 units this year, moving India up from eighth place in two thousand sixteen to seventh for the UK automotive industry as an enhancing number of affluent buyers take advantage of a range of all fresh premium and luxury British-built cars, according to the membership-led trade bod.
The upward trend vis-a-vis the Indian market contrasts with the overall picture for the industry, with UK car production falling by -2.9% in the very first half of 2017, attributed to the uncertainties triggered by Brexit.
The European Union (EU) remained the UK’s largest trading playmate, accounting for more than half of all cars produced for export (54.6%), with Germany and Italy the UK’s 2nd and third fattest single markets.
The SMMT found that EU countries make up half of UK automotive’s top ten export destinations, highlighting the importance of continued free trade.
"World class engineering and products, strong government collaboration and massive investment have helped UK Automotive become a global success story. At the heart of this has been the free and frictionless trade we’ve liked with the EU by far our thickest customer and supplier," Hawes cautioned.
"Given the deeply integrated European vehicle and component supply chain, we need Brexit negotiators on both sides to recognise the importance of barrier free trade for the European automotive industry. Any disruption to this risks undermining one of the EU’s most valuable economic assets.
"The industry needs certainty so an interim deal, maintaining UK single market and customs union membership until we have in place the sophisticated fresh agreement with the EU, must be a priority for the UK in its withdrawal negotiations."
Production for export continued to drive volumes in two thousand seventeen as global request for British-built cars dipped by a marginal -0.9% in the very first six months, with 683,826 cars shipped overseas.
Albeit UK automotive exports eight out of every ten cars it builds to customers in some one hundred sixty countries worldwide, it is also a major importer.
More than 85% of the cars registered by British buyers in the very first six months of the year came from overseas plants, and more than two thirds (67%) from the EU, highlighting the importance of mutually beneficial tariff and barrier-free trade.