UK car production hits 17-year high as exports to Europe and US soar

Britain built 1.7 million cars last year - a figure that was an 8.5% increase on 2015, as well as a 17-year high.

The UK saw more than 1.7 million of the vehicles roll off its production lines in 2016, with exports reaching a record 1.35 million.

Global demand for British-built cars increased by more than 10%, leading to four of every five UK-manufactured cars being exported to one of 160 markets.

But figures also show that investment in the industry fell last year amid uncertainty over Brexit, according to the Society of Motor Manufacturers and Traders.

SMT's chief executive is now predicting that car production in the UK will reach an all-time high before 2020.

Exports to the EU increased by 7.5% in 2016 Credit: PA

However, Mike Hawes sounded a note of caution over the investment - which fell to £1.66 billion last year, compared to £2.5 billion previously.

Firms appear to be delaying investment decisions until plans for Brexit become clearer.

Mr Hawes warned that the viability of the car industry was at stake, estimating that tariffs - which could be imposed by Britain leaving the single market - might add £1,500 on to the price of cars.

"We don't want tariffs - it's a red line for the car industry. There would be an impact on demand and jobs - that's a cliff edge we want to avoid," he said.

"We want trade deals but they must be the right deals, not rushed deals.

"Failure to do so could damage UK automotive manufacturing beyond repair."

Most of last year's growth in car production was because of continuing economic recovery across Europe, Mr Hawes said.

Top 10 best-selling British cars worldwide:

  • Nissan Qashqai

  • Toyota Auris

  • Mini

  • Vauxhall Astra

  • Range Rover Sport

  • Range Rover Evoque

  • Land Rover Discovery Sport

  • Honda Civic

  • Jaguar F-Pace

  • Jaguar XE