UK Electric Car Manufacturers Call for Adoption of Five Pledges to Drive £106bn Growth in EV Industry by 2030
The Society of Motor Manufacturers and Traders (SMMT) has launched the ‘Manifesto 2030: Automotive growth for a zero emission future’, urging the government to implement vital changes in support of the UK electric vehicle industry. Electric car manufacturers are specifically highlighting Five Steps to Seize Opportunities and drive growth in the £106bn sector.
According to the Manifesto, a significant increase in battery electric vehicle (BEV) production to over 750,000 units annually by 2030, which is ten times the current capacity, could result in a production value of £106bn.
The electric car manufacturers are convinced that implementing five crucial measures can accelerate the adoption of electric vehicles, address the industry’s skill shortage, reduce the cost of clean energy, and enable British EVs to be marketed worldwide.
Challenges Confronting the British EV Industry
Electric car manufacturers emphasized the critical need to significantly expand the domestic EV supply chain in the UK to fully capitalize on the industry’s substantial growth.
While the industry has experienced a 4% growth, supporting 208,000 jobs in the past year, the UK faces challenges in remaining competitive on the global stage due to the significant cash incentives and subsidies offered by other countries to attract green manufacturing.
Additionally, UK electric car manufacturers are deeply concerned about the potential tariffs on UK-EU trade for EVs. These tariffs, scheduled to be implemented in six months, would render British-built EVs uncompetitive in the largest export market for the country and result in higher prices for consumers. This, in turn, could negatively impact the uptake of electric vehicles.
Another crucial concern is inflation. More than 80% of electric car manufacturers, who participated in SMMT’s latest automotive business confidence barometer, highlighted that increasing input costs are restricting profitability and investment, despite the growing demand.
Furthermore, 90% of electric car manufacturers have expressed that energy prices act as a constraint on investment, citing the UK sector’s electricity costs being more than double that of its EU counterparts.
Actions Sought by UK Electric Car Manufacturers
The five pledges and policies that UK electric car manufacturers are calling for include:
- Publish a Green Automotive Transformation Strategy to accelerate innovation, attract investment, and support the manufacturing of clean technologies for zero-emission mobility.
- Establish a reliable and affordable UK-wide recharging and refuelling network, along with a motor tax and regulatory system that facilitates electric vehicle adoption.
- Create a national upskilling platform to cultivate the next generation of industry talent, enhance STEM education in schools, and implement an immigration system that attracts global expertise.
- Prioritize the supply chain in UK trade policy and market access, ensuring tariff-free export of British-made vehicles, batteries, and green technologies, while providing support to enable businesses of all sizes to thrive.
- Ensure the availability of affordable and internationally competitive zero-emission energy, while committing dedicated energy and investment to enable the production of zero-emission vehicles.
In his concluding remarks, Mike Hawes, Chief Executive of SMMT, emphasized the industry’s commitment to meeting the challenging targets set by the government. However, he highlighted the intense competition in the investment landscape and stressed the need for an immediate and comprehensive UK response. He called for the utilization of all available policies, fiscal measures, and regulatory tools to position Britain as the most enticing destination for investment in the sector.
“We present a challenge to all political parties today: provide us with the right conditions, and the automotive industry will transform its obligations into opportunities. These opportunities will benefit our industry, create jobs, promote environmental sustainability, and contribute to the growth of the UK.”