LONDON -- UK car production rose 9.1 percent in August compared with the same month last year, the Society of Motor Manufacturers and Traders (SMMT) said today, cautioning future growth would depend on Britain continuing to trade competitively after its vote to leave the European Union.
Output rose to 109,004 vehicles last month, the highest for 14 years, with 75 percent of cars built in the UK sold to overseas markets, the SMMT said in a statement.
The UK's overwhelmingly foreign-owned car industry backed remaining in the European Union due to the benefits of tariff-free trade and standardized regulations.
The automobile sector faces bigger risks from the Brexit negotiations than many others in the UK because the EU imposes a 10 percent import tariff on vehicles from outside the bloc.
But investment decisions in the sector often occur several years before models roll off the production line, meaning the effect of the June 23 vote may not be felt until the end of the decade and beyond.
"Future success depends on continued investment in plant and products and that in turn depends on the UK maintaining internationally competitive business and trading conditions," SMMT CEO Mike Hawes said in the statement.
The UK is not expected to trigger official divorce proceedings from the EU, which are due to last two years, until early 2017.
Through August, UK production grew 12 percent to just over 1.13 miilion units, the SMMT said.
Nissan, Toyota, Honda are among automakers that manufacture cars in the UK, along with BMW Group's Mini and Rolls-Royce brands, Volkswagen Group's Bentley, Tata's Jaguar Land Rover and General Motor’s Vauxhall unit.
Automotive News Europe contributed to this report