Car manufacturing output in the UK rose for the third month running in April, soaring 9.9%.

April brought a third consecutive month of UK car manufacturing growth

A total of 66,527 cars rolled out of factory gates, according to the newly published figures from the Society of Motor Manufacturers and Traders (SMMT), up by 5,973 units compared to April last year and showing the continued easing of global supply chain shortages.

The rise was largely down to exports, which increased 14.7% to 54,820 units and accounted for 82.4% of production. It’s the third month in a row that exports saw a double-digit rise.

Combined volumes of hybrids, plug-in hybrids and fully electric vehicles vehicles were up 56.2%, accounting for well over a third of all production (37.7%).

But changes to the EU–UK rules of origin pose a ‘looming cliff-edge’ and significant challenges to future EV production; as recently outlined by Stellantis. The parts sourcing rules agreed under Brexit get tougher from next year for manufacturers on both sides of the Channel and raise the prospect of punitive tariffs being applied to electric vehicles.

With the latest figures showing the significance of exports to the UK automotive sector, the SMMT says the UK must do everything possible to “safeguard the competitiveness of these trading relationships”.

Mike Hawes, chief executive at the trade association, continued: “Most immediately, this means finding a solution to the rules of origin challenge faced by manufacturers on both sides of the Channel, else we risk the application of tariffs – and therefore unnecessary cost – on the very vehicles we are trying to encourage consumers to purchase.”

It’s calling for a pragmatic solution to be found urgently – and says a renegotiation of the EU–UK Trade and Cooperation Agreement isn’t necessary, but simply “a common-sense approach to find agreement over a technicality, giving Britain and the EU more time to establish the local supply chains needed to drive a successful transition to zero-emission mobility”.

Richard Peberdy, UK head of automotive for KPMG, said: “The need for a higher percentage of an electric vehicle to be sourced from within the UK or EU poses significant challenge, especially as battery production is still in its infancy within Europe.

“Over half of the vehicles produced in the UK in April were electric in some form, so the importance of a solution that avoids tariffs being applied to vehicles is clear.”