The Society of Motor Producers and Merchants (SMMT) chief government Mike Hawes has mentioned that extra beneficial situations for funding are “wanted and wanted urgently” to make sure UK automobile manufacturing’s 2023 restoration.
Information revealed by the automotive trade physique this morning (November 25) revealed that the sector’s automobile output rose 7.4% to 69,524 items in October as manufacturing for dwelling and abroad markets up 12.5% and 6.3% respectively.
Regardless of 8.8% year-to-date enhance output for the UK market volumes stay 10.8% down year-to-date, nonetheless, and it stays to be seen whether or not financial situations will permit a sustained restoration interval.
Hawes mentioned: “Getting the sector again on observe in 2023 is a precedence, given the roles, exports and financial contribution the automotive trade sustains.
“UK automobile makers are doing all they’ll to ramp up manufacturing of the newest electrified autos, and assist ship net-zero, however extra beneficial situations for funding are wanted and wanted urgently – particularly in inexpensive and sustainable power and availability of expertise – as a part of a supportive framework for automotive manufacturing.”
Richard Peberdy, KPMG’s UK head of automotive, mentioned it remained unclear the place the funding that the UK automobile manufacturing sector wants goes to come back from.
He added: “The price of producing vehicles is rising, with a spread of supplies dearer on account of inflation, and the trade is nervously awaiting the result of the federal government’s evaluate into power value help for companies past the top of March.
“Publicity to rising power costs throughout 2023 would additional stress new automobile costs and threaten the worldwide competitiveness of the UK automotive trade.
“The race for international locations to be seen as world leaders in electrical automobile (EV) manufacturing is effectively underway and the UK’s place for manufacturing vehicles, vans and components is dependent upon very appreciable funding in battery manufacturing and expertise. At this stage it isn’t clear the place that is going to come back from.”
October’s rise in UK car manufacturing output followed a September decline which got here after 4 consecutive months of development.
The SMMT mentioned that this illustrated the sector’s “provide chain turbulence”, specifically international chip shortages.
October’s efficiency remained 48.4% off 2019’s complete of 134,669 items and 52.8% off the five-year pre-COVID common for the month.
The SMMT mentioned exports of the newest quantity, luxurious and specialist fashions drove volumes with greater than eight-in-10 (81.2%) vehicles made heading abroad, equal to 56,469 items, whereas 13,055 vehicles had been turned out for the home market.
UK manufacturing of battery electrical (BEV), plug-in hybrid (PHEV) and hybrid (HEV) autos additionally rose once more, with mixed volumes up 20.3% to 24,115 items.
12 months-to-date, UK automobile factories have produced a report 61,339 BEVs, up 16.2% on the identical interval in 2021.
Hugo Griffiths, Client Editor at carwow, Europe’s largest on-line market for getting and promoting vehicles, mentioned: “October’s manufacturing figures are in a single sense optimistic as they present a marked upswing on the earlier yr however, with year-to-date numbers down by over 10%, in addition they show how weak the trade is to produce constraints, and the way far we nonetheless must go earlier than we get wherever close to pre-pandemic manufacturing ranges.
“Whereas the overwhelming majority of vehicles made within the UK are constructed for export, nationwide manufacturing traits echo these of the worldwide market.
“Given this, UK customers can nonetheless anticipate prolonged waits for some fashions, one thing that may be circumvented by taking a versatile strategy when new-car purchasing: regardless of manufacturing difficulties many fashions are in wonderful provide.”