Electrified models supported UK vehicle production growth, with their output up 22.5% to account for more than two-fifths (42.3%) of cars produced in September and 70.1% of exports, the Society of Motor Manufacturers and Traders (SMMT) reported.
Exports continued to account for more than three quarters of overall output, with 76.7% of all cars built destined for international markets.
These exports were led by China, where shipments increased by 357.7%, albeit from a low base, to take a 4.4% share. The US recorded a similarly substantial rise of 234.8%, accounting for 16.8% of the total, while the EU remained the largest global destination, taking 57.5%, with volumes up 12.7% year on year.
Commercial vehicle (CV) exports also grew in the month, up 1.6%. Overall, UK factories built 564,537 cars and CVs in the first nine months, a year on year decline of 3.0%.
The latest independent outlook anticipates full-year output of light vehicles at 731,000 units, down 2.3% on 2025. Output is forecast to recover to 752,000 units in 2027 as new models, mostly electric, enter production.
But according to the SMMT this growth was at risk from The European Commission’s ‘Made in EU’ proposals, which, as drafted, effectively exclude UK-built vehicles from their largest market.
Secondly, tougher rules of origin arising under the Trade Cooperation Agreement – the ‘Brexit deal’ – will, from 2027, risk the imposition of a shared annual £1.4 billion tariff bill on EV trade in both directions.
It also said that the ZEV Mandate needed to “realign the EV trajectory to government’s industrial and growth ambitions. Meaningful reform of the mandate will deliver reindustrialisation as well as decarbonisation.”
Mike Hawes, SMMT Chief Executive, said:
“September’s rebound is welcome, but comparison with last year’s disruption masks the pressures on UK manufacturing. Protectionism is becoming a feature of global trade, and that threatens not just UK automotive as an export-led sector, but the health of industries overseas as well.
“Pragmatic discussions with trade partners are required but Government can immediately help the industry with an urgent conclusion to the ZEV Mandate review. Mandate targets are running ahead of demand and draining resources required for British factories and jobs. Substantive changes – not marginal adjustments – are needed to ensure decarbonisation does not come at the cost of reindustrialisation.”
Image courtesy of Green Car Guide
