Number of cars built in UK increases for fourth month in succession

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The number of cars built in the UK has increased for the fourth month in a row, new figures show.

A total of 49,901 cars were built in August, up 34% compared with a year ago, the Society of Motor Manufacturers & Traders said.

But the figure was well below August 2019's pre-pandemic level of 92,158 units, which the SMMT said underlined the scale of recovery still needed in the industry.

Production of battery electric, plug-in hybrid and hybrid vehicles increased.

Almost a third of all cars made in Britain in August were one of these models, with most exported to global markets.

Output of BEVs alone more than doubled to account for almost one in 10 cars produced, said the SMMT.

Production so far this year is 13% down on the first eight months of 2021 and companies are on course to build fewer than a million cars for the third consecutive year.

The figures come as new analysis by the SMMT highlighted the ‘staggering’ energy costs, already the highest in Europe, facing the UK's automotive vehicle and component manufacturers.

The collective energy bill has increased by more than £100 million over the last 12 months, to more than £300 million.

SMMT Chief Executive Mike Hawes said, ‘While another month of rising UK car production is good news, and testament to sectoral efforts to overcome supply chain shortages, it overshadows what is an extremely tough and uncertain environment for manufacturers.

‘Volumes are down dramatically and firms are having to take drastic steps to safeguard their businesses in the face of myriad challenges.

‘The government's measures announced last week to alleviate crippling energy costs provide valuable respite, but long-term action is needed to restore stability and provide the sector with a globally competitive investment framework.

‘Reform of business rates, enhanced capital allowances, an affordable and secure supply of low-carbon energy, and investment in new skills, can enable this critical sector to deliver the economic growth, productivity improvements, balance of trade benefits and job security the UK sorely needs.’

Richard Peberdy, UK head of automotive at KPMG, said: ‘A gradual easing of global supply shortages, plus government support on energy costs, will aid UK car production in the coming months, but inflation is driving up input costs, and a weakening pound threatens to do so further.

‘Passing costs to the consumer is becoming increasingly challenging, although at this stage manufacturers still continue to have busy order books to work their way through.’

source: PA

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