Car makers will be pondering cost-of-living squeeze impact

KPMG respond to January's SMMT car manufacturing data

KPMG respond to January's SMMT car manufacturing data

Commenting on SMMT car manufacturing data for January: Richard Peberdy, UK Head of Automotive at KPMG, said:

“Overall volumes are still lower than pre-pandemic and will remain so until chip supply shortages are resolved.  But car manufacturers will be pleased that 2022 has begun with healthy demand for the vehicles they are producing, much of which are higher-margin models. 

“The start of 2022 has certainly provided car makers with more confidence than this time last year in the industry’s ability to avoid paused production lines, closed showrooms and staff isolating.  But they will be pondering whether the cost-of-living squeeze, which includes rising fuel prices and energy costs, begins to slow the demand that currently outpaces supply.  

Manufacturers are also coming under their own inflationary pressures, with the challenge of how to absorb those, or pass them on to already squeezed consumers. 

The industry also faces the familiar challenge in the year ahead of ensuring the next generation of skilled employees is coming through.”

 

For further comment or interview:

Steven Reilly-Hii

Media Relations Manager (Industrial Manufacturing, Automotive, and Future Mobility)

KPMG LLP

E: steven.reilly-hii@kpmg.co.uk

T: 07510 376635

 

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 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.

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