Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

UK car output growth strongest in September as overseas shipments rise- SMMT

Published 26/10/2023, 00:04
© Reuters. FILE PHOTO: A view shows morning rush hour traffic in central London, Britain July 6, 2020. REUTERS/John Sibley/File Photo

(Reuters) - Britain's car output in September rose nearly 40% compared with the year earlier, the strongest growth so far this year, driven by an uptick in export demand, industry data showed on Thursday.

A total of 88,230 units rolled out of factory lines in the country last month, the Society of Motor Manufacturers and Traders (SMMT) said, which is nearly double the production numbers in August.

Easing supply chain issues and a fast-growing shift to electric vehicles (EV) have been aiding the UK's car industry, a significant driver of manufacturing and exports. For September, EV output rose 41.5% over the year earlier.

But under the trade deal agreed when Britain left the European Union, the origin rule requires a rising proportion of EV parts to be made locally to qualify for trade without tariffs, starting 2024. Failure to comply would result in a 10% tariff.

The rule has drawn widespread criticism from automakers as it would make these cars more expensive and potentially hurt demand.

"Given the increasing importance of electrified car production, the first and urgent step is for the UK and EU to agree to delay the tougher rules of origin requirements that are due imminently," SMMT Chief Executive Mike Hawes said in a statement.

A three-year delay to the implementation of these new requirements would maintain competitiveness, SMMT said.

Overseas shipments rose 32.2% to 64,727 units in September, with almost six in 10 cars produced going to the European Union.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.