Following the release of statistics by the Society of Motor Manufacturers and Traders (SMMT) showing that UK car production in August grew for the fourth consecutive month, up 34% year-on-year to 49,901 units;

David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:

“The growth trend of recent months is welcome, but it comes against a very depleted base for comparison with output in Britain still running at almost half the level it was before the pandemic. The UK’s automotive industry faces big competitive challenges ahead.

“While manufacturers are still in the position of fulfilling order backlogs under long waiting times caused by an unprecedented shortage of critical parts this year, underlying demand prospects are deteriorating.

“UK government measures to mitigate the impact of imminent soaring energy costs this winter are welcome, of course, but higher energy bills and other cost pressures are emerging as a major worry throughout the supply chain when companies look to prospects for next year and beyond.

“Furthermore, lower economic growth and weaker car demand in the UK and in major export markets, will make it very difficult for car companies and their suppliers to pass on higher manufacturing costs to their customers.”