How to improve British car output: Rishi Sunak's first challenge as UK PM

Day after Rishi Sunak took oath as the new Prime Minister of United Kingdom, one of his many first challenges will be to improve the auto industry output amid several issues. The Society of Motor Manufacturers and Traders (SMMT) has urged Sunak to chalk up a plan to make that happen as British car production dropped 6 per cent last month after seeing growth for the previous four months. The British auto industry continues to face challenges such as high energy costs, supply chain issues and shortage of components.

Last month, carmakers in United Kingdom manufactured 63,125 units which is half of what they did three years ago before the Covid-19 pandemic hit the world. The silver lining has been the electric vehicle segment which has seen a growth of more than 16 per cent in September. Tata Motors-owned Jaguar Land Rover, Nissan Motor, BMW Mini and Toyota Motor are some of the major carmakers based out of United Kingdom.

Rishi Sunak, who replaced Liz Truss after her brief stint, has a larger challenge in hand to lift the economy amid recession. Mike Hawes, Chief Executive at SMMT, said,"Stability, combined with a plan that tackles critical skills shortages, delivers regulatory certainty and brings down the cost of energy in the long-term can help put the UK at the forefront of next-generation automotive manufacturing."

The SMMT urged "In the week the UK gets a new prime minister, the sector is calling on the government to work together to create a competitive business environment for UK automotive manufacturing."

According to the British car manufacturing body, rising energy costs have been one of the biggest challenges for the automakers in UK. Overall, carmakers have paid over 300 million pounds worth energy bills till August this year.

The British auto industry has been facing problems since UK's decision to exit EU. Earlier this month, BMW announced that it will stop making electric Mini hatchbacks in England.