UK car production hits record high
【Summary】UK car manufacturing experienced a significant boost in September, with production increasing by almost 40%. Both domestic and export markets saw growth, and the Society of Motor Manufacturers and Traders (SMMT) emphasized the importance of maintaining tariff-free trade with the EU. Failure to comply with new rules of origin for batteries could result in a 10% tariff and raise the average cost of UK-built battery electric vehicles by £3,600 in Europe.
UK car manufacturing experienced significant growth in September, with a nearly 40% increase, according to the Society of Motor Manufacturers and Traders (SMMT) (source i). This positive development is particularly important for the UK economy, as it supports thousands of jobs and attracts billions of pounds in investment.
In September, a total of 88,230 vehicles were produced in British factories, marking a 39.8% increase and the best September performance since 2020. Both domestic and export markets saw a rise in output, with UK production increasing by 65.9% to 23,503 units and overseas shipments growing by 32.2% to 64,727 units.
The SMMT highlighted the growing significance of electric vehicle (EV) trade with mainland Europe and emphasized the importance of maintaining tariff-free trade as outlined in the UK-EU Trade Cooperation Agreement (TCA). Starting next year, stricter rules of origin for batteries will be implemented, which could impact the competitiveness of UK exports to the EU and EU imports to the UK market. Failure to comply could result in a 10% tariff, leading to an average price increase of £3,600 for UK-built battery electric vehicles (BEVs) in Europe and a £3,400 price hike for EU-made BEVs sold in the UK.
The trade association suggested that a three-year delay in implementing these new requirements would support British and European manufacturers and could be achieved within the existing TCA framework, without the need for formal renegotiation. Andrew Whicher, Product Director at Cooper Solutions, expressed optimism about the strong performance of UK car manufacturing, particularly in the electric vehicle sector, which positions the country as a leading EV manufacturing hub for EU countries.
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