More than 88,000 cars were made in UK factories last month — an increase of almost 40% compared to the same month last year.
It was the strongest month of growth in 2023 and the best September since 2020, according to industry body the Society of Motor Manufacturers and Traders (SMMT).
A total of 88,230 vehicles rolled off factory lines during the month, compared with 63,125 a year ago. The increase was driven by a 32% rise in exports, with almost six in 10 vehicles going to the European Union.
Output of electric vehicles (EVs) was up 41.5% year-on-year.
The SMMT welcomed the strong monthly figures but warned that “urgent action” is needed to ensure UK and EU trade remains competitive from 2024, when tougher “rules of origin” are due to come into force.
Under the Brexit trade regulations, 45% of the value of an EV must originate in the EU or UK in order to avoid a 10% trade tariff. If fully passed on, this tariff would raise the average cost of UK-built battery electric vehicles (BEVs) by £3,600 in Europe, while EU-made BEVs sold in the UK would see an average £3,400 price hike.
“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,” said SMMT chief executive Mike Hawes. “This would give the necessary breathing space for automotive sectors on both sides of the Channel to scale up gigafactories and green supply chains, both of which are essential for a stable, long-term transition.”
