The UK automotive industry experienced its strongest month of growth in 2023, thanks to an increase in car exports to the European Union (EU). According to the Society of Motor Manufacturers and Traders (SMMT), car manufacturing in the UK increased by an impressive 39.8% in September 2023, with a total of 88,230 units produced across the country.
Exported automobiles played a major role in this growth, with a notable 32.2% increase in exports compared to the previous year. Almost 60% of these exported vehicles were destined for the EU, making it a crucial market for the UK. Furthermore, deliveries for the UK domestic market saw a notable increase of 65.9%.
A highlight was the increase in the production of electrified vehicles, which increased by 41.5%. This upward trend demonstrates the continued expansion of the electric vehicle market and its growing market share.
The SMMT highlighted September as a triple success for the sector. It was the biggest growth month of 2023, the best September since 2020, and UK car manufacturing hit an impressive 659,901 units so far this year, surpassing the same period in 2022 by 14.9%.
While positive growth in the UK automotive industry is cause for celebration, there are challenges ahead. The SMMT expressed concern about the possible impact of the EU’s upcoming rules of origin on automotive components, especially on the production of electric vehicles. SMMT CEO Mike Hawes stressed the importance of delaying these rules as it would provide space for the UK and EU automotive sectors to establish green supply chains necessary for a stable, long-term transition.
European carmakers have also requested a three-year delay in the introduction of post-Brexit rules of origin. They argue that these rules, which impose a 10% tariff on cars exported between the UK and the EU if the batteries are not sourced within Europe, would hamper electric car production in the bloc. Currently, a significant portion of electric car batteries are produced outside Europe, mainly in China, South Korea and Japan.
Overall, the strong growth of the UK automotive industry, driven by increasing car exports, highlights the resilience and potential of the industry. However, addressing challenges such as sourcing requirements will be crucial to ensuring the continued success of the sector and its transition to electrification.
Frequently asked questions (FAQ)
1. What drove the strong growth of the UK automotive industry in September 2023?
The UK automotive industry experienced its strongest month of growth in 2023, driven mainly by an increase in car exports to the European Union (EU). Exported cars, especially those destined for the EU market, played an important role in the increase in production.
2. Did UK domestic car sales contribute to the growth?
Yes, along with the increase in exports, car deliveries for the UK domestic market also saw a notable increase, contributing to the overall growth of the UK automotive industry.
3. What was the growth rate of electrified vehicle production?
Production of electrified vehicles, including electric cars, increased by an impressive 41.5%. This growth shows the growing market share and importance of electric vehicles in the automotive industry.
4. What concerns were raised about the EU rules of origin for automotive components?
UK SMMT Chief Executive Mike Hawes has expressed concern about the potential impact of EU rules of origin for car components on UK electric vehicle production. He stressed the need to delay these rules to provide the time needed for automotive sectors on both sides of the Channel to establish green supply chains.
5. What request was made by European car manufacturers regarding “rules of origin”?
European carmakers have requested a three-year delay in the introduction of post-Brexit rules of origin. These rules would impose a 10% tariff on cars exported between the UK and the EU if the batteries used in the vehicles are not sourced within Europe. Manufacturers argue that these rules would hamper electric car production in the bloc, as a significant portion of electric car batteries are produced outside Europe.
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2023-10-30 10:42:18
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