UK car output jumps 36% in September on weak year-earlier base

what happened

Britain's vehicle output surged in September, according to the Society of Motor Manufacturers and Traders (SMMT), reaching 74,031 units, up 36.3% from a year earlier. It was the strongest growth since August 2022. The rise mainly reflects a cyber incident at the country's largest automotive employer last year, which disrupted production.

Car output climbed 38.6% to 70,831 units, the best September for UK car manufacturing since 2023. The European Union remained the biggest export destination, taking 57.5% of car shipments, while overall exports to it rose 12.7%. Shipments to the US jumped 234.8% and to China 357.7%, though from a low base.

Over the first nine months, total car and commercial vehicle production fell 3% to 564,537 units. The SMMT also criticised the EU's proposed "Made in EU" measures and stricter post-Brexit rules of origin due from 2027, and warned that Britain's electric-vehicle mandate is weighing on manufacturers.

why it matters

The monthly jump looks striking, but it largely reflects a weak September last year. The more important signal for markets is the 3% drop over nine months and the independent forecast cited by the SMMT, which expects light vehicle output to fall 2.3% to 731,000 units this year. That keeps pressure on Britain's industrial sector.

market impact

UK auto sector: weak year and new trade rules weigh on manufacturers

• ▼GBP/USD pressure down — weak manufacturing data adds pressure on the UK economy

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