UK automakers have seen energy costs jump by about £100 million ($109 million) this year, or 50 percent, fueling concerns among a majority of manufacturers over the future of their operations, a survey by the Society of Motor Manufacturers and Traders found.
The higher energy bills have led nine in 10 automakers to pass on rising costs to customers, while many have delayed or canceled major investments.
UK auto output rose for a fourth consecutive month in August, though production remained 46 percent below pre-pandemic levels, the SMMT said Thursday.
“While another month of rising UK car production is good news, and testament to sectoral efforts to overcome supply chain shortages, it overshadows what is an extremely tough and uncertain environment,” said Mike Hawes, SMMT’s CEO.
“Volumes are down dramatically and firms are having to take drastic steps to safeguard their businesses in the face of myriad challenges.”