By Ilaria Grasso Macola
UK automotive production grew in July by 8.6 per cent, marking the third consecutive month of growth, according to figures published today by the Society of Motor Manufacturers and Traders (SMMT).
Factories produced 4,605 additional vehicles – a signal that component shortages might begin to ease – while output for the UK market surged 40.7 per cent.
But despite the increase, car production remains 46.4 per cent below pre pandemic levels as a result of supply chain shortages and weak exports.
Compared to last year, overall production slumped by 16.5 per cent, while exports fell by 21.3 per cent to around 363,000 units due to a decrease in top markets such as the EU and the US.
“A third consecutive month of growth for UK car production is, of course, welcome and gives some hope that the supply chain issues blighting the sector may finally be starting to ease,” said SMMT’s chief executive Mike Hawes.
“But other challenges remain, not least energy costs which are increasing at alarming rates.”
According to Richard Peberdy, KPMG’s UK head of automotive, the next prime minister will need to play a fundamental role if Britain wants to remain competitive.
“Owing to ongoing supply issues, demand still outweighs supply – but this isn’t a save-all for the challenges that the sector faces,” he said.
“UK car manufacturers will be looking to the new prime minister and government to support the competitiveness of the industry over the coming months, particularly as it looks to seize electric vehicle market share globally.”
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