Car manufacturing in the UK was up by a fifth in April, with industry monitors recording the biggest monthly rise since July 2012.
The latest Society of Motor Manufacturers & Traders (SMMT) report revealed that UK car production rose by 21.3 per cent in April to 133,436 units. The news signals a sustained level of improvement within the sector, with car plants nationwide launching full-scale production of new models.
Car dealerships and garages will be expecting an increase in business as consumer demand and manufacturing levels continue to rise. However, any increases in the number of vehicles or significant changes in the kind of cars on a dealership's forecourt will need to be reflected in their motor trade insurance policy. Without updating its policy to cover a greater total value of vehicles on the business premises, a firm could find itself out of pocket in the case of significant damage or theft.
SMMT chief executive, Mike Hawes, commented on the findings: “The thriving nature of the UK car manufacturing industry was evident in April as output grew at its highest rate for almost two years.
“New model introductions are fuelling growth, while Europe – which currently accounts for around half of exports – is now seeing an upturn in demand. As investments continue to be realised, we expect further rises in the coming months; good news for the thousands of suppliers and employees across the country that rely on this industry.”
The upturn in Europe may be of particular of interest to dealers considering expanding their business operations overseas, with new market demand opening up additional revenue streams. But it is worth checking with expert brokers like ChoiceQuote to see if your motor trade insurance policy covers business overseas as you could need a specialist insurance policy for such operations.