Autovista Group Survey: Which sector will be hit hardest should Britain pursue a ‘hard’ Brexit?
08 June 2018
08 June 2018
With Brexit negotiations advancing, there is still concern from the automotive industry in the UK that should no deal be made on the UK staying in a customs arrangement, delays at the borders as well as tariffs on imports and exports will affect different areas of the market.
In 2017, just over 1.3 million cars were exported from Britain, and a total of 2.7 million engines were produced in the country to be shipped overseas. In 2016, exported products were worth £40.2 billion (€45.8 billion) to the country’s economy, counting for 13% of total exports the UK made. The automotive industry turned over £77.5 billion (€88.3 billion) in that year, and added £22 billion (€25 billion) to the British economy.
Last year, 54% of vehicle exports were to the EU, however more parts for production and aftersales were also shipped into and out of the country. Additionally, since the Brexit referendum, consumer confidence over an unstable financial market has hit sales, and consumers are wary about financing a big purchase as a result.
Autovista Group wants to know which sector would therefore be hit hardest should the UK decide that a ′no’ deal on customs and the single market would be in the best interests of the country. Will parts supplies suffer with longer customs times, or will research and development find a lack of investment as manufacturers look to put funds elsewhere, with an impact as a result? Will carmakers change their manufacturing landscape and scale down efforts in the UK, or will sales and finance be hardest hit from any financial implications?