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Cut down in UK car production – Supply Chain issues

There has been a 6% decline in UK car production since September, with over 63K models rolling off factory lines, as per the new figures published by the Society of Motor Manufacturers and Traders (SMMT). Output is again restricted by “severe supply chain issues affecting manufacturers”.

Exports also declined in last 2 months, down by 7.4% to 48,956 units, driven by reductions in shipments to the EU, USA and China, although exports increased to South Korea, Australia and Turkey.

The number of cars built for the UK market fell slightly, down by 0.9% to 14,169 units.

As per sources, UK automotive manufacturing remains in a perilous state, with businesses concerned about high and sustained inflation in energy, material, and logistics costs. Besides, a base line of throttled supply chains in key components and the costs and disruption of the covid years. There is a worry about the UK sector’s ability to invest in key technology development and skills. These seem to be critical for the UK to retain any position of strength in the medium term, as the global automotive and mobility industry reshuffles itself around energy transition and new global platforms.

Huge amounts of money and jobs are dependent on the automotive sector. Though there are current challenges, car makers remain resilient and ramping up output of the latest, zero emission vehicles which will help drive an economic recovery, possible jobs thereby boosting growth.

UK sector needs to attract new investment – by creating competitive investment conditions.

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