UK vehicle production rises sharply in September against cyber-hit comparison

Oct 29 (Reuters) - Britain's vehicle production rose sharply in September, industry data showed on Thursday, rebounding from a cyber-incident-hit comparison a year earlier.

UK vehicle output increased 36.3% to 74,031 units in September, the strongest growth since August 2022, the Society of Motor Manufacturers and Traders (SMMT) said. The increase reflected disruptions caused by a cyber incident at Britain's largest automotive employer last year.

Car production climbed 38.6% to 70,831 units, marking the strongest September for UK car manufacturing since 2023.

The European Union remained the largest global destination, taking 57.5% of car shipments, with exports up 12.7% year on year. Shipments to the US rose 234.8%, while exports to China increased 357.7%, though from a low base.

Despite the monthly rebound, total UK car and commercial vehicle production in the first nine months of the year fell 3% year on year to 564,537 units.

The industry body reiterated concerns over the European Union's proposed "Made in EU" measures and tougher post-Brexit rules of origin due to take effect from 2027, while warning that Britain's electric-vehicle sales mandate is adding pressure on manufacturers and could threaten the sector's recovery.

"September's rebound is welcome, but comparison with last year's disruption masks the pressures on UK manufacturing," said SMMT Chief Executive Mike Hawes.

"Mandate targets are running ahead of demand and draining resources required for British factories and jobs."

An independent forecast cited by the SMMT expects UK light vehicle production to fall 2.3% to 731,000 units this year before recovering to 752,000 units in 2027 as new models, mostly electric vehicles, enter production.

(Reporting by Ankita Bora in Bengaluru; Editing by Maju Samuel)