UK carmakers delivered the best September output since 2020 but action is needed now to protect EV exports from 2024.

The SMMT is now warning that urgent action is needed to ensure UK and EU trade remains competitive ahead of the imminent arrival of tougher rules of origin for batteries

Output from factory lines rose 39.8% in September to 88,230 vehicles – 25,105 more than the same month last year – according to new figures from the Society of Motor Manufacturers and Traders (SMMT).

Production increased for both domestic and export markets, with the former up 65.9% to 23,503 units and overseas shipments rising 32.2% to 64,727 units. Of the latter, almost six in 10 were shipped to the EU, making it the UK’s leading automotive trading partner by some distance.

Electrified vehicle output was up by 41.5% – and the SMMT is now warning that urgent action is needed to ensure UK and EU trade remains competitive ahead of the imminent arrival of tougher rules of origin for batteries.

The rules, set under the EU–UK Brexit deal, place minimum restrictions on all battery parts and some battery raw materials to ensure they’re locally sourced within the EU or UK. These requirements hike up from 2024.

Failure to comply will result in a 10% tariff which if fully passed on 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, as revealed in the SMMT’s report last week.

The trade association continues to call for a three-year delay to the implementation of these new requirements, which would maintain competitiveness, supporting British and European manufacturers. The SMMT also says such a move is readily achievable through the existing EU–UK Trade Cooperation Agreement (TCA) post-Brexit framework with no need for formal renegotiation.

Mike Hawes, SMMT chief executive, said: “With countries around the world shifting to zero-emission motoring, Britain is well placed to be a global EV manufacturing hub if the investment and trading conditions are right. 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. 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.”