According to the Society of Motor Manufacturers and Traders (SMMT), car production in the UK increased by 9.9% YoY in April. Easing supply chain disruptions were credited with helping to boost production volumes of electric vehicles, while exports to Europe were also a contributing factor. The EU remains the largest market for UK-made cars, accounting for more than half of all exports to the region. A total of 66,527 cars were produced last month, up 5,973 from April last year, logging the third consecutive month of growth. Meanwhile, exports rose 14.7% to 54,820 units as compared to the previous year.
Despite the positive developments, the UK's automotive industry faces some challenges post-Brexit. Under the trade deal agreed when Britain left the European Union, the origin rule requires, starting 2024, a rising proportion of electric vehicle's parts to be made locally to qualify for trade without tariffs. Stellantis, the world's third-largest car manufacturer by sales, warned last week that British car plants would be shuttered with the loss of thousands of jobs unless the Brexit deal is swiftly renegotiated. Stellantis wishes for the UK government and the European Union to prolong current rules on the sourcing of parts until 2027.
SMMT Chief Executive Mike Hawes stated that "these figures also show how exports, particularly to Europe, continue to be the foundation of British automotive manufacturing so we must do all we can to safeguard the competitiveness of these trading relationships". Hawes urges stakeholders to find a solution to the current situation; otherwise, there could be unnecessary tariffs on electric vehicles and higher production costs.