LONDON, May 28 (Xinhua) -- Britain's vehicle production stabilized in April, with output falling slightly year-on-year, though the country's export-driven automotive sector continues to face concerns over growing trade protectionism in the European Union (EU).
Britain's vehicle production fell 1.2 percent year-on-year in April to 58,513 units, according to data released Thursday by the Society of Motor Manufacturers and Traders (SMMT).
Production of passenger cars was broadly stable for a second consecutive month, slipping only 0.7 percent to 56,135 units, while output of commercial vehicles, including vans and trucks, fell 10.9 percent to 2,378 units, the SMMT said.
"April's figures suggest production is stabilizing, albeit at reduced levels, when the ambition remains to grow in the sector," SMMT Chief Executive Mike Hawes said.
He said British automotive manufacturers continue to face high costs, particularly energy prices, as well as uncertainty in trade relations with key markets.
Exports accounted for 76.4 percent of Britain's vehicle output in April. The EU remained the country's largest export market, receiving more than half of the cars exported.
However, the sector faces uncertainty about new EU industrial policies after the European Commission proposed the Industrial Decarbonization Accelerator Act in March, which would prioritize "Made in EU" goods in public procurement and support schemes for sectors including energy-intensive industries, net-zero technology manufacturing, and the automotive supply chain.
"The car industry was always the most against Brexit as it wants to be part of the European setup," Patrick Minford, a professor at Cardiff Business School, told Xinhua.
Iain Begg, a professor at the London School of Economics and Political Science, told Xinhua that the policy could undermine exporters relying on materials and components sourced outside the EU by requiring higher levels of European content in imports.
"The policy could be damaging for UK exporters by diminishing their access to EU markets," he said.
Britain's automotive sector has urged action to ensure the policy does not restrict UK-produced vehicles, parts, batteries and raw materials from accessing their largest export market, according to the SMMT.
The industry body warned that such measures could hurt both the British and the EU automotive industries. Given the deep integration of bilateral automotive supply chains, the policy could damage competitiveness, disrupt investment, and weaken manufacturing capability on both sides, it said.
It noted that both sides already face the prospect of tariffs when stricter rules-of-origin requirements for electric and plug-in hybrid vehicles take effect in January 2027.
If the issues remain unresolved, it warned, the resulting disruption could jeopardize a trading relationship worth 80 billion euros (94 billion U.S. dollars) annually and pose a significant threat to the broader European automotive industry amid intensifying global competition.
