7:52 am, August 25, 2022
UK car production rose for the third consecutive month in July, hinting that component shortages are beginning to ease – but the sector is a long way from a full recovery.
That’s the word from the Society of Motor Manufacturers and Traders (SMMT). Its latest data published today (Aug 25) showed UK factories churned out 58,043 cars in July – an 8.6 per cent rise on the same month last year.
That equates to 4,605 extra cars built compared to July 2021, and a sign that component shortages may be easing.
However, the SMMT warned that while the figures did give hope supply chain issues were beginning to ease, the sector is far from a full recovery.
The year-on-year figures were also skewed by July 2021 being the worst July since 1956 as it was blighted by semiconductors shortages and staff absences arising from the ‘pingdemic’.
Moreover, UK car production is still 46.4 per cent lower than pre-pandemic levels.
Of the 58,043 cars built, 11,583 were from the home market – up 40.7 per cent on July 2021 – while the remaining 46,460 were for export – up a modest 2.8 per cent year-on-year.
July was the third month of consecutive growth for car manufacturing, but, despite this, 2022 year-to-date figures are 16.5 per cent lower than in the same period last year at 461,174 units, representing a shortfall of 91,187 units.
The SMMT said the decline was die to supply ‘chain shortages, structural changes and weak exports’/
SMMT chief executive Mike Hawes said: ‘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.
‘But other challenges remain, not least energy costs which are increasing at alarming rates.
‘If we are to attract much needed investment to drive the production of zero emission vehicles, urgent action is needed to mitigate these costs to make the UK more competitive for manufacturing.
‘This must be a priority for the next prime minister else we will fall further behind our global rivals, risking jobs and economic growth.’
What Car? editor, Steve Huntingford, said that while the semiconductor crisis is starting to ease, carmakers are now having to face the problem of rising energy costs.
‘Automotive manufacturing is an energy consumptive industry, and the SMMT has previously estimated the rise in energy prices will add another £90m in costs for OEMs operating in the UK this year alone. Rising costs are eventually passed to consumers through higher prices,’ he said.
