The UK’s car industry is “back on track” after another increase in the number of vehicles built, latest motorist industry figures show.
The Society of Motor Manufactures and Traders (SMMT) said production rose by 14.8 per cent in November compared with the same month last year.
A total of 91,923 cars were built, an increase of 11,832 on November last year, representing the best performance for the month since 2020.
Production for both the home (13.4 per cent) and overseas (15.2 per cent) markets increased. Export growth was driven mainly by the EU, China and Turkey, although Europe received by far the bulk (60.8 per cent) of all shipments.
UK production of battery electric, plug-in hybrid and hybrid vehicles rose, with combined volumes up 20 per cent to 35,169 in November.
Mike Hawes, SMMT chief executive, said: “UK car production is firmly back on track following the tough Covid years and resulting supply chain challenges. With significant investment now committed there is renewed confidence in the sector.”
The production data came as it was confirmed that tariffs on electric cars from next year will be avoided after the UK and the EU agreed to extend trade rules.
Both the UK and the EU agreed to extend existing regulations until the end of 2026, Rishi Sunak said. Europe is the largest market for British carmakers and the UK is the largest market for European vehicle producers.
Rules of origin had been due to apply from 1 January, with tariffs of 10 per cent imposed on car sales between the UK and the EU if at least 45 per cent of the vehicle’s value did not originate in the UK or EU.
The SMMT estimated tariffs could have resulted in an average price rise of £3,400 on EU-manufactured pure battery electric vehicles bought in the UK.
Mr Hawes, welcomed the agreement, describing it as “a win for motorists, the economy and the environment”.
He added: “Maintaining tariff-free trade in EVs will ensure consumers retain the widest and most affordable choice of models, at a time when we need all drivers to make the switch.”