UK car production rose 27% in May on demand for EVs

Britain’s car production rose for a fourth straight month in May, driven by higher demand for electric vehicles, the Society of Motor Manufacturers and Traders (SMMT), said in a statement.

The SMMT said on Friday a total of 79,046 cars rolled out of factory gates in the UK last month, an increase of nearly 27%. That is still 32 percent lower than 2019 levels.

While easing supply-chain snails have boosted vehicle production, Britain’s car industry continues to grapple with post-Brexit export rules.

Under the trade deal agreed when Britain left the European Union, the origin rule requires a rising proportion of electric vehicles’ parts to be made locally to qualify for trade without tariffs, starting 2024.

The rule has drawn criticism from several automakers as it will make these vehicles more expensive and potentially hurt demand.

Combined hybrid electric, plug-in hybrid and battery electric vehicle volumes surged 95 percent in May to 27,636 units, and represented 35 percent of all cars produced during the time, SMMT said.

Exports accounted for 80 percent of the total output, SMMT said, with the EU remaining the biggest market.