The Society of Motor Manufacturers and Traders (SMMT) has reported a significant increase in British car production, with a 9.9% year-on-year rise in April. This growth can be attributed to the easing of supply chain problems, which has spurred the production of electric vehicles, while exports to Europe have also gained strength.
According to the SMMT, the European Union (EU) continues to be the primary market for British car exports, accounting for over half of the total exports. Additionally, the data reveals that electric cars constitute more than one-third of the total vehicle output.
In terms of specific numbers, the total British car output for April reached 66,527 units, marking an increase of 5,973 units compared to the same period last year. This growth represents the third consecutive month of production expansion. Furthermore, exports experienced a substantial boost, rising by 14.7% to reach 54,820 units.
The SMMT emphasizes the significance of these figures, highlighting the crucial role that exports, particularly to Europe, play in supporting the British automotive manufacturing sector. As a result, safeguarding competitiveness in these trade relations becomes a paramount concern.
These statements from the SMMT come at a time when the British car industry faces challenges related to post-Brexit export regulations. Under the post-Brexit trade agreement, the origin rule stipulates that starting in 2024, an increasing proportion of electric vehicle parts must be produced domestically in order to qualify for duty-free trade.
Industry experts, including Mr. Hawes, have stressed the need to address these regulatory requirements in order to protect the British car manufacturing sector’s competitiveness. Ensuring compliance with the origin rule is crucial to maintaining the industry’s growth and securing its position in the international market.