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Trade Trends News
27-10-2023
UK car production rose almost 40% year-on-year in September, the strongest growth so far this year, driven by rising export demand, industry data showed.
The Society of Motor Manufacturers and Traders (SMMT) said a total of 88,230 vehicles were produced on the country's factory lines last month, almost double August's output.
Easing supply chain issues and the rapid growth of electric vehicles (EVs) have been helping the UK automotive industry, which is a key driver of manufacturing and exports. in September, EV production rose 41.5% year-on-year.
But under the trade deal struck when the UK left the European Union, rules of origin require an increasing number of EV parts to be produced locally from 2024 to qualify for duty-free trade. Failure to comply will result in a 10 percent tariff.
The rule has drawn widespread criticism from automakers because it would make these cars more expensive and could hurt demand.
Mike Hawes, chief executive of the SMMT, said in a statement, "Given the growing importance of electric vehicle production, the UK and the EU agreeing to delay the impending implementation of the stricter rules of origin requirements is a first and urgent step."
SMMT said a three-year delay in implementing these new requirements would maintain competitiveness.
Overseas shipments rose 32.2 percent to 64,727 units in September, with nearly six out of every 10 vehicles sold to the EU.
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