Britain’s Car Production Could Take Five Years to Reach Pre-Pandemic Levels: Industry Body

The British car manufacturing industry has faced significant challenges in recent years, with the impact of the pandemic still being felt. According to the Society of Motor Manufacturers and Traders (SMMT), it could take up to five more years for the UK to return to producing 1 million or more cars a year.

Despite an expected increase in car production to 860,000 this year, the industry is still struggling to reach pre-pandemic levels. The global semiconductor shortage, plant closures, and manufacturing changes by automakers have all contributed to the current state of British car production, which remains 32.5% below 2019 levels.

One positive development for the industry is Tata Motors’ commitment to building a major electric vehicle (EV) battery plant in Britain. This investment could help boost production and competitiveness in the EV market, which is becoming increasingly important in the automotive industry.

However, challenges such as high energy costs and post-Brexit EU trade requirements on rules of origin for EVs continue to hinder the industry’s growth. The SMMT has called for a delay in the implementation of these rules to allow domestic EV production to catch up and remain competitive in the European market.

As the industry works towards increasing production and competitiveness, it is clear that collaboration and support from both government and industry stakeholders will be crucial. With the right strategies and investments, the British car manufacturing industry can overcome these challenges and work towards a more sustainable and prosperous future.