"While global trading patterns have shifted since 2020, the UK remains deeply intertwined with Europe. Last year, £68.4 billion in automotive trade flowed across the Channel, representing almost 60% of the UK sector's total trade value. More than half of all UK-built cars are still exported to the EU, while the vast majority of new cars sold in Britain come from European factories."
"EVs are increasingly driving this activity. Cross-border trade in electrified vehicles has surged by 424% since 2019, climbing from £4.6 billion pre-pandemic to nearly £24 billion in the 12 months to June 2025. Exports of UK-made hybrids and EVs to the EU now outweigh internal combustion engine (ICE) models by two-to-one, while EU shipments of electric cars to the UK - worth £17.6 billion - have overtaken ICE exports for the first time."
The UK's automotive sector generated £115 billion in imports and exports last year and is on track to exceed £110 billion for a third consecutive year. Trade with the EU remains dominant, with £68.4 billion flowing across the Channel and more than half of UK-built cars exported to EU markets. Cross-border trade in electrified vehicles rose 424% since 2019, reaching nearly £24 billion in the year to June 2025, and EU electric car shipments to the UK reached £17.6 billion. New rules of origin for EV batteries from January 2027 require higher local production, but battery manufacturing capacity is lagging demand, creating a risk of disrupted trade.
Read at Business Matters
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