Car manufacturing has risen for the third consecutive month in an indication part shortages could also be easing, though the trade has warned over the impression of “alarming” power value rises.
A complete of 58,043 automobiles had been constructed within the UK in July, 8.6% greater than throughout the identical month final yr, in accordance with figures from the Society of Motor Manufacturers and Traders (SMMT).
This raised hopes {that a} world lack of elements reminiscent of semiconductors, which has disrupted automobile manufacturing, may very well be lifting, stated the group.
But the SMMT warned the continued progress “must be set in context” given the comparability with the identical month final yr, which was the worst July in additional than 60 years as carmakers wrestled with elements shortages and coronavirus-related employees absences, resulting in many factories altering their summer time shutdown timings.
Despite the current improve in output, ranges are nonetheless practically half of pre-pandemic ranges, highlighted that “full recovery is some way off”.
Production for the UK market surged 40.7% to 11,583 automobiles with exports additionally up, however by a extra modest 2.8%.
Shipments continued to drive the sector, accounting for eight out of 10 automobiles made, although exports to high markets the EU and US fell, down 7.3% and 22.8% respectively, whereas orders from China and Japan rose 54% and 40.1%.
Almost a 3rd of all automobiles made in July had been both electrical or hybrid amounting to some 17,356 automobiles.
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SMMT chief govt Mike Hawes stated: “A third consecutive month of growth for UK car production is, of course, welcome and gives some hope that the supply chain issues blighting the sector may finally be starting to ease.
“But different challenges stay, not least power prices that are growing at alarming charges.
“If we are to attract much needed investment to drive the production of zero emission vehicles, urgent action is needed to mitigate these costs to make the UK more competitive for manufacturing.
“This should be a precedence for the following prime minister else we’ll fall additional behind our world rivals, risking jobs and financial progress.”
Source: information.sky.com”