Commercial characteristic from Cooper Options

September noticed the strongest month of development for UK automotive manufacturing this yr, growing by virtually 40 per cent in September, in keeping with the most recent figures from the Society of Motor Producers and Merchants (SMMT)ⁱ.

Andrew Whicher, Product Director, Cooper Options seems on the significantly robust interval of automotive making which is nice information for the UK, given the 1000’s of jobs and billions of kilos of funding that rely on the sector. 

In the course of the ninth month of the yr, 88,230 autos left British manufacturing unit traces, representing an uplift of 39.8 per cent and the perfect September since 2020.

Output elevated for each home and export markets, with manufacturing within the UK up 65.9 per cent to 23,503 items and abroad shipments rising 32.2 per cent to 64,727 items.

With the growing significance of EV commerce with mainland Europe specifically – bilateral commerce which has greater than doubled in worth within the final three years – SMMT acknowledged the tariff-free commerce set out in the UK-EU Commerce Cooperation Settlement (TCA) have to be maintained. From the start of subsequent yr, harder guidelines of origin for batteries will come into pressure. Given the worth of batteries to the whole value of an EV, SMMT mentioned the rule adjustments threaten the competitiveness of each UK exports to the EU and EU imports to the UK market.

The commerce affiliation mentioned failure to conform will lead to a ten% tariff which if totally handed on would increase the common value of UK-built battery electrical autos (BEVs) by £3,600 in Europe, whereas EU-made BEVs bought within the UK would see a median £3,400 worth hike.

It added {that a} three-year delay to the implementation of those new necessities would preserve competitiveness, supporting British and European producers, and is instantly achievable by way of the prevailing TCA framework without having for formal renegotiation.

Andrew commented: “After a slower August, it’s promising to see the strongest month for UK automotive manufacturing up to now this yr.  The UK manufacture of electrical autos is up once more, placing Britain in a strong place to turn out to be a number one EV manufacturing hub, significantly for EU international locations as Britain’s main buying and selling companions.”

ⁱ https://media.smmt.co.uk/september-2023-uk-car-manufacturing/