British automobile manufacturing made additional beneficial properties in April, with output rising for the third month in a row, up 9.9%, in response to the most recent figures printed at present by the Society of Motor Producers and Merchants (SMMT). 66,527 vehicles rolled out of manufacturing facility gates, 5,973 greater than in April final yr as world provide chain shortages, most notably of semiconductors, continued to ease.

Exports drove volumes, rising 14.7% to 54,820 items, with greater than eight in 10 vehicles (82.4%) heading abroad. This was the third month in a row that exports noticed a double-digit rise. The European Union remained by far an important world market, taking 58.4% of all exports, equal to 32,002 items with volumes up 12.2%, adopted by the US, China and Australia. Shipments to those locations modified by 36.2%, -3.6% and 226.8% respectively, with consumers selecting the most recent British-built fashions, together with many with hybrid or zero emission powertrain expertise.

UK factories continued to end up rising numbers of hybrid electrical (HEV), plug-in hybrid (PHEV) and battery electrical autos (BEVs), with mixed volumes up 56.2% in April and representing effectively over a 3rd of all manufacturing (37.7%). Thus far this yr, producers have made 113,315 of those essential autos, proof of the UK’s rising functionality in producing the subsequent technology of inexperienced passenger vehicles.

The information comes because the UK and EU automotive sectors face a looming cliff-edge with guidelines of origin agreed within the UK-EU Commerce and Cooperation Settlement, governing native content material for electrical autos and batteries, as a consequence of get harder from 1 January 2024. These guidelines pose important challenges to producers on either side of the Channel and lift the prospect of punitive tariffs being utilized to electrical autos alone.

Mike Hawes, SMMT Chief Govt, mentioned,

UK automobile manufacturing is beginning to motor once more, excellent news for the sector and the numerous 1000’s of jobs and livelihoods it sustains. These figures additionally present how exports, significantly to Europe, proceed to be the muse of British automotive manufacturing so we should do all we will to safeguard the competitiveness of those buying and selling relationships. Most instantly, this implies discovering an answer to the foundations of origin problem confronted by producers on either side of the Channel, else we danger the applying of tariffs – and due to this fact pointless value – on the very autos we try to encourage customers to buy.

The sector, each within the UK and EU, is looking for a realistic resolution to be discovered urgently. This doesn’t require a renegotiation of the TCA, merely a typical sense strategy to seek out settlement over a technicality, giving Britain and the EU extra time to determine the native provide chains wanted to drive a profitable transition to zero emission mobility.

SOURCE: SMMT