Historic And Classic Motor Vehicles: High Potential In The Midst Of Brexit

Amid concerns about the impact of Brexit on the automotive industry, there’s one subsector that might be able to help keep it afloat. The economic impact of the historic and classic automobile arena could make Britain a world leader in the field. This could well impact positively on the industry for related sectors like car accessories, and help control the increase in car, car accessory, and car battery cost. And with top sellers like Orius offering great car battery prices for UK car owners, the future for the auto industry in the country could defy gloomy predictions in the wake of Brexit.

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In total, the historic and classic automobile industry contributed a turnover of £18.3 billion to the economy in 2019, with 11,300 people employed in the sector. Though Covid-19 restrictions adversely affected these numbers in 2020 and undoubtedly will have an impact in 2021, things could get better looking at long-term returns.

It’s worth noting that the classic car sector already boasts a high rate of job satisfaction. In fact, it’s included in the top 8% of the most satisfying jobs in the country. It’s also an area that requires specialised skills, which means that the pay is 70% higher compared to other jobs across the entire industry.

It’s also good to know that the classic car sector is holding its end up in terms of innovations set to help the environment by looking at sustainable practices and keeping its environmental impact to a minimum.

No-deal Brexit’s impact on the automotive industry

Brexit discussions with Europe reached a nail-biting finish with a deal finally being agreed on 24 December 2020, allowing free trade to continue with certain caveats over the near future. The impact of no agreement having been reached would have meant that the two parties would have treated future trades based on terms set by the World Trade Organisation.

That would have resulted in tariffs of around 2.8% on non-agricultural products from the UK, with the impact on cars and other industries set to be much bigger. In total, a no-deal Brexit could have resulted in an additional 10% being added to the price of cars in the UK.

Higher tariffs would also have applied to products coming from the EU into the UK, so raw materials and other products coming into the country would have become more expensive. That would potentially have pushed the price of commodities higher too, even those that were manufactured within the country.

To clarify the impact of that, it’s worth noting that eight out of 10 cars produced and assembled in the UK are meant for export. And of all these exported cars, customers from the EU account for 51% of purchases. By the same token, fewer than four in every ten cars produced in the EU are meant for export. Only 1/3 of this number, roughly 12.4% of the EU’s total production, are headed for the UK.

It is also important to think about the entire supply chain, and not just the cars themselves. The entire automotive industry is very tightly integrated, with parts, accessories, and other relevant products and services stretching across the continent. Overall, there would have been a significant impact to a no-deal Brexit, hiking up car, car accessory, and car battery cost prices.

All in all, 2020 has been an extremely difficult year for the automotive industry, considering the impact the ongoing coronavirus pandemic has had, plus living under the threat of a no-deal Brexit. Any bright spot in the future that could potentially help keep down the increase in the overall cost of cars, car accessory and car battery price scales is to be welcomed. And among these is the classic automobiles subsector.

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Published at: 07-01-2021