Yeah that was the problem. I moved them outwards so that they are no longer restricted by the purple motor mount which gives it an extra few millimetres which I hope should be enough
I spent all night on it on this by the way, I should have left it because I then started to make mistakes:
I managed to trash the sp1. eed controller by supergluing the supercap to the edge and fitting it to the car. I then discovered that all the LEDs were under where I had superglued the cap. So I swapped the sides, trashing the circuit board cover into thousands of tiny bits in the process

At least now I can see the LEDs albeit through a haze of superglue. I think it will be new speed controller time on the first impact. There seems to be so much to squeeze into these cars.
The biggest problem now seems to be connecting to the LiPos without fouling the drive belt. Negative is no problem and can be securely guided through the centre of the belt. Positive is just (by 1 mm) to the LiPo side of the car and beneath the top deck. I have no clue how I am going to connect this. I'll up some photos of it as it currently ASAP.
Thanks for the advice!
Jo