Demand for new cars continues, but questions about UK car industry remain unanswered

KPMG respond to SMMT car production data for January.

KPMG respond to SMMT car production data for January.

Richard Peberdy, UK Head of Automotive for KPMG, said:

“An easing of supply shortages and continued demand for new cars, despite the cost of living squeeze, is keeping the market moving.

But medium to longer-term questions remain unanswered for the industry, despite investing over £10 billion in electric vehicle capability since 2011.  At present the UK is proving a less attractive proposition for new vehicle manufacturing facilities due to relatively high labour and energy costs, and access to raw materials and chemicals.

“Some countries, like the USA in the form of its Inflation Reduction Act, have developed bold policy moves to encourage inward investment in next generation manufacturing facilities for the electric vehicle supply chain - and these are proving effective at securing big bet investments from car makers.   Whilst the UK is a global leader in high value skills and research, in a globally competitive environment the government and the local industry need to do more to show that it can be a viable manufacturing base for battery and electric vehicle manufacturing at scale.” 

ENDS

 

Media contact:

Steven Reilly-Hii, Media Relations Manager, KPMG LLP, E: steven.reilly-hii@kpmg.co.uk , T: 07510 376635.

About KPMG UK:

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.