List prices for cars could rise by £1,500 post-Brexit if the UK doesn’t stay in the single market.

New figures show threat of EU tariffs could leave industry and consumers with at least a £4.5bn bill.

That was the message from the Society of Motor Manufacturers and Traders (SMMT) at its annual dinner last night (29 November) as president Gareth Jones urged the Government to “make the right decisions” during Brexit negotiations.

According to new SMMT analysis, EU tariffs on cars alone could add at least an annual £2.7bn to imports and £1.8bn to exports. Import tariffs alone could push up the list price of cars imported to the UK from the continent by an average of £1,500 if brands and their retail networks were unable to absorb these additional costs.

Latest SMMT production figures show UK car makers are on track to set a new record for exports and beat the production volumes achieved last year.

Gareth Jones said: “The Government has – commendably – put industrial strategy at the heart of business and the department for business. It does so as it faces its toughest challenge – leaving the EU. We must make the right decisions: on trade, on regulations and on business competitiveness.”