The UK raked in £27 billion from automotive exports last year, making vehicles the country’s most valuable export good. That’s according to a new report produced by a leading automotive industry body, which has urged the government to put the sector “at the heart” of future trade deal negotiations.

According to the Society of Motor Manufacturers and Traders (SMMT) report, even the coronavirus pandemic could not stop vehicle export revenues hitting an eye-watering £27 billion in 2020. That made cars, trucks and buses more valuable to the UK than power-generating machinery and even gold, despite the fact the UK’s car factories were shuttered during the first lockdown.

On the whole, the UK automotive sector generated a total trade revenue of £74 billion last year, with more than 80 percent of British-built cars and more than 60 percent of light commercial vehicles destined for customers abroad. That may have been down by more than a quarter compared with 2019, but it still makes up a good chunk of trade in the UK.

Volvo train car transporter

As a result, the SMMT says the government’s trade policy should “restore growth and jobs” by taking “opportunities from a post-Brexit, post-fossil fuel world”. In particular, the organisation wants the government to capitalise on growing markets in Asia and Eastern Europe, with future trade deals that include dedicated “automotive annexes and provisions” to reduce tariffs and regulation.

The industry body also wants the UK to establish rules that will “reflect the UK’s future supplier base” as companies move towards electric forms of propulsion. It claims such a move would allow British-built electric vehicles to be freely exported and “play an essential role in reducing emissions”. It would also ensure the country can attract “global talent” that will keep it among the market leaders.

Nissan LEAF production in Sunderland, UK

And the industry says its report “highlights the importance” of trade with the European Union (EU). Around half of all cars made in Britain are exported to the EU and almost all vans built in this country find their way onto European roads.

Mike Hawes, the SMMT’s chief executive, said putting automotive concerns front and centre in future trade agreements and policy would help put Britain at the forefront of industrial and economic progress.

“As the world re-emerges from the pandemic, the diversity and importance of Britain’s automotive industry is the UK’s competitive advantage for restarting growth, creating jobs and tackling climate change,” he said. “With automotive at the heart of future trade policy, and negotiations focused on removing both the tariff and non-tariff barriers that stifle growth, we can drive forward the growth of Global Britain and sustain our place as an economic, industrial and environmental leader.”