Post-Brexit tarriffs would cost UK car industry £42.7bn by 2024

The latest report from the Society of Motor Manufacturers and Traders urged Westminster to deliver an ambitious Brexit deal, warning that tariffs could decimate UK car production.

In a press release on Wednesday, the SMMT said that levies on the car industry in the UK could mean that production of 1.5m vehicles was lost by 2024, at a cost of £42.7bn.

WTO tariffs on imported components and exported vehicles would add more than £3.2bn a year to UK automotive manufacturing costs - the equivalent to almost 90% of the sector’s annual spend on research and development.

While setting out the industry’s priorities for a new government, the SMMT said that the Brexit trade deal had to maintain the sector’s competitiveness and ability to deliver innovation, productivity and prosperity for Britain.

SMMT President George Gillespie outlined the industry’s vision for a better, safer and cleaner future, saying: “The automotive sector is going through a period of unprecedented change and we must not let the pressure of Brexit deflect from our focus on a coherent national industrial strategy.

“Collaboration between industry and government must be stronger than ever… We want to work closely with the next government, as we have in the past; united in a common purpose to keep UK Automotive a global player that drives employment, creates wealth and gives all of us pride in what we can do here.”

The automotive sector is one of the UK’s most valuable economic assets, exporting more goods than any other sector to over 160 countries worldwide. It also contributes £18.6bn to the country’s economy.

The manufacturing sector is also directly responsible for putting food on the tables of 168,000 British workers and their families, said the SMMT press release.

Mike Hawes, SMMT chief executive, said: “UK Automotive’s needs are clear: frictionless trade free of tariffs, with regulatory alignment and continued access to talent.

“A close trading relationship is essential to unlock investment so we can deliver our goals: cleaner air, zero carbon emissions, and the ability to go on building our products and marketing them globally.”