SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd

Driving the future: UK automotive delivering economic growth through low carbon developmentPaul Everitt, Chief Executive, SMMT

26 May 2011

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New car registrations

• The scrappage scheme helped support volumes.• Market down 8.5% to April and set to end 2011 at 1.93 million units.

New car registrations, 12 month moving annual total 2008 to 2012 (Source SMMT)

Market stabilised, at lower level

Dec-08

Feb-09

Apr-09

Jun-0

9

Aug-09

Oct-09

Dec-09

Feb-10

Apr-10

Jun-1

0

Aug-10

Oct-10

Dec-10

Feb-11

Apr-11

Jun-1

1

Aug-11

Oct-11

Dec-11

Feb-12

Apr-12

Jun-1

2

Aug-12

Oct-12

Dec-12

1750

1800

1850

1900

1950

2000

2050

2100

2150

2200

UK new car registrations 2008 to 2012 - actual and SMMT forecastsrolling year totals - moving monthly annual totals

Actual dataSMMT forecast (Oct 10)SMMT forecast (Jan 11)SMMT forecast (Apr 11)Series5

regi

stra

tions

in th

ousa

nds

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New car registrations

• Scrappage in place May 2009 to March 2010 (with some overhang).• Represented almost 15% total sales over that period.

New car registrations, 2009 to 2011, with scrappage identified (Source SMMT)

Impact of scrappage scheme

J F M A M J J A S O N D0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,0002008 SIS 2009 SIS 2009 2010 2011

2011 forecast

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New car registrations

• Scrappage scheme supported private market.• Fleet volumes stable and supporting overall market.

New car registrations, 12 month moving annual total 2007 to 2012 (Source SMMT)

Private and fleet split

‘000s 2007 2008 2009 2010 2011 F 2012FTotal 2,404 2,132 1,995 2,031 1,930 2,012

% change 2.5% -11.3% -6.4% 1.8% -5.0% 4.3%Private 1,046 892 1,014 958 853 888

% change -14.7% 13.7% -5.6% -11.0% 4.1%Fleet/Business 1,358 1,239 980 1,072 1,077 1,124

% change -8.7% -20.9% 9.4% 0.5% 4.4%

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Long-term commitment to UK plantsOutput stabilising as VMs confirm ongoing investment

• MINI Coupé and Roadster production confirmed.

• £1.5bn investment in engineering and manufacturing facilities over the next five years by Ford.

• £1.4bn investment at Swindon by Honda since launch in 1985.

• JLR to retain all three production sites, creating 1,500 new jobs.

• £420m investment by Nissan to make LEAF and batteries.

• Toyota added Auris Hybrid to its UK production.

• Next generation Vivaro confirmed for Vauxhall’s Luton plant.

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Rebalancing the UK economy – products over servicesPriorities for growth

• The UK produces over one million vehicles and two million engines each year.

• Automotive represents over 10% of total UK exports, worth £25bn over the past five years.

• The UK exports over 75% of the vehicles it produces.

• Automotive employs over 700,000 people, contributing £8.5bn value to the UK economy.

• Low carbon growth through investment in R&D and technology will deliver long-term growth.

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UK automotive – driving economic growthA strong future at the heart of the low carbon agenda

• Low carbon growth through investment in R&D and technology will deliver long-term growth.

• Supporting suppliers and reinvigorating the automotive supply chain.

• Attracting international investment and growing business through trade.

• Increasing skills to equip a new generation.

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Automotive Council – www.automotivecouncil.co.ukKey outputs so far:

• Consensus Technology Roadmap – mapping the path to ultra-low carbon.

• Automotive Technologies: the UK’s current capabilities.

• Automotive Technology and Manufacturing Readiness Levels – Jan 2011.

• Growing the Automotive Supply Chain: The Road Forward – Mar 2011.

• Commercial Vehicle and Off-Highway Roadmap – Apr 2011.

• ‘See Inside Manufacturing’ – 29 June and 10-21 Oct 2011.

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SMMT Test Day 2011Safety Zone

• Electronic Stability Control •Predictive Emergency Braking

•Book your 30 minute demonstration at the Bosch stand