The Automotive Industry: Growing In A Harsh Environment

The Automotive Industry: Growing In A Harsh Environment

We all can admit that the past few years have been tough on the automobile industry. It faced and continues to face, various challenges like the pandemic, supply shortages, the ban on traditional fuel engines and the cost of living crises. Despite this, the industry continues growing and expanding.

This July, the UK commercial vehicle manufacturing sector enjoyed its best July in six years. Data from the Society of Motor Manufacturers and Traders shows a 43.9% increase in production compared to the same month last year and the best July performance since 2016.

58, 693 new commercial vehicles were built over the course of the first seven months of the year. This is a 46.9% increase compared with the same period last year. Output has been so exceptional that it’s the best first seven months of a year since 2012.

The export market has seen substantial growth too, with more than 34,000 vehicles being shipped abroad. That’s a 72.9% increase on the first seven months of 2021.

Although new car sales are down, electric car sales have increased. Global passenger plug-in electric car sales for July have increased by 61% compared to the same period last year.

What does this data mean for the future of the automotive industry?

This growth signals that component shortages may finally be beginning to ease. This will give many sectors within the industry some much-needed breathing room, and with this extra freedom, we might increase the rate at which the industry is recovering. This will need everyone’s input though.

“The automotive sector has had another tough month and is drawing on its fundamental resilience during a third consecutive challenging year as the squeeze on supply bedevils deliveries,” said SMMT chief executive Mike Hawes.

“While order books are strong, we need a healthy market to ensure the sector delivers the carbon savings government ambitions demand. The next Prime Minister must create the conditions for economic growth, restore consumer confidence and support the transition to zero-emission mobility.”

The resilience and tenacity of the automotive sector have shown should be an inspiration to us all. So that we may continue to forge a path through any challenge that may come our way.