Turnover in UK automative industry hit record £77.5bn in 2016

Turnover in the UK auto industry hit a record last year alongside a big increase in research and development spend that boosted productivity, a leading industry group said.

Sales in the sector climbed 9% to £77.5bn in 2016, according to the Society of Motor Manufacturers and Traders's 18th annual Sustainability Report.

Last year also saw alternatively fuelled vehicle registrations jump 22.2% for a market share of 3.3%, making Britain the largest market for plug-in electric cars in Europe.

Mike Hawes, SMMT Chief Executive, said: "today’s results demonstrate how UK automotive is delivering growth across the UK, boosting productivity and improving environmental performance.

"This has been driven by massive investment, in new models, plants, innovation and one of the world’s most skilled workforces. However, for UK auto manufacturing to continue to thrive, we need clarity on the future, post Brexit, to encourage ongoing investment and growth."

For a seventh consecutive year, output volumes and productivity grew alongside turnover as well.

UK car and commercial vehicle production and new vehicle registration volumes were also at record levels, rising by 8.9% and 0.2%, respectively.

At 169,000, employment in manufacturing was stable, with staff turnover decreasing to 5% in 2016 - versus a national average of 16.5%.

Car manufacturing in Britain also became more sustainable last year, with CO2 emissions per vehicle produced falling by 2.9%, while energy use per vehicle decreased by 3.2% and water use by 3.5%.