UK motorists could be charged an extra £1,500 for new cars imported from the European Union after Brexit, according to a new report.
Analysis by trade body the Society of Motor Manufacturers and Traders (SMMT) warned that the list price of imported vehicles could soar if the cost of import tariffs were not absorbed by brands and retailers.
The UK's decision to withdraw from the EU could add at least £2.7 billion to imports and £1.8bn to exports each year, the SMMT predicted.
READ MORE: Sturgeon warns on Brexit in historic address to Irish Senate
The figures were based on a 10 per cent standard tariff on cars exported to and imported from the EU.
UK carmakers are on track to set a new record for exports this year and increase production from 2015.
But SMMT president Gareth Jones described Brexit as the UK Government's "toughest challenge" and said it was vital "the right conditions for future competitiveness" were put in place if the automotive industry was to continue to grow.
He told the society's 100th annual dinner at Grosvenor House in central London: "The challenge now is to make a success of the new future.
"We want a strong UK economy and we want to see the UK's influence in the world enhanced but this cannot be at the expense of jobs, growth or being an open, welcoming trading nation.
READ MORE: Sturgeon warns on Brexit in historic address to Irish Senate
"You, our members, have told us what you want: membership of the single market, consistency in regulations, access to global talent and the ability to trade abroad free from barriers and red tape, added Mr Jones."
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