Following the release of data today by the Society of Motor Manufacturers and Traders (SMMT), showing that UK car production in May grew for the first time since June 2021 in May, up 13.3%;

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

“Although UK car output posted its first rise in 11 months in May, headwinds for the UK’s industry are gathering – particularly in rising energy costs which are working their way through the economy and manufacturing supply chains.

“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 with lower economic growth and higher price inflation.

“Real incomes for households and businesses will be increasingly squeezed later this year and that will dent new car demand – at home and in major export markets.

“In such circumstances it will be very difficult indeed for car companies to pass on higher costs to their customers.”