THE managing director of Wellington-based firm Pritex says motorists may have to pay up to £1,500 more for a new car if the UK fails to agree a deal on trade tariffs when it leaves the European Union.

Gareth Jones, president of the Society of Motor Manufacturers and Traders (SMMT), said Brexit could cost the car industry and consumers £4.5bn. Imposition of a ten per cent standard tariff on vehicles coming into and out of the country would mean £2.7bn of levies on imported cars and £1.8bn on exported vehicles.

Mr Jones, who was speaking at the SMMT’s 100th annual dinner, said the costs were likely to be passed on to car buyers as the industry works to tight margins.

He called on the Government to negotiate a deal with the EU on trade levies that ensures Britain’s car industry is not harmed by the result of the Brexit vote.

Mr Jones said: “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.

“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.”

Mr Jones also spoke about the transition to digital manufacturing through new technologies such as 3D printing and artificial intelligence, which had the potential to boost already high productivity.

He said: “The so-called fourth industrial revolution will be a step change in manufacturing, with production lines developing more over the next five to ten years than in the past half century.”

Pritex is a leading manufacturer of acoustic and thermo-acoustic insulation products for automotive and industrial applications. Mr Jones was appointed managing director in January 2016. He will step down as SMMT president after a two-year term at the end of 2016.