UK auto industry calls for policy turbocharge as competition surges
Britain’s ability to compete as an Electric Vehicle (EV) production leader is at risk unless government responds urgently to increasingly fierce international competition.
This is according to a new report from the Society of Motor Manufacturers and Traders (SMMT), which represents the UK auto industry.
The call comes as other countries significantly power up political and economic backing for their own automotive sectors, positioning themselves at the front of the queue for investment through policies such as the US Inflation Reduction Act and the EU’s recently announced Green Deal Industrial Plan.
The SMMT report, Race to Zero: Powering Up Britain’s EV Supply Chain, sets out the UK’s strengths in advanced automotive manufacturing, low carbon energy and R&D, but stresses the need for an urgent response to international policy developments.
According to the Society, the UK has significant potential from the progress already made by the domestic automotive sector and supply chain.
To date, according to SMMT analysis of publicly announced investments since 2011, more than £11 billion ($13.4 billion) has been invested by manufacturers in EV production locally.
This has led to fully electric or hybrid vehicles comprising almost a third of all UK-built cars last year, with an export value of £10 billion ($12.2 billion).
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UK auto industry: Capitalise on strengths
However, while these are significant advantages for the UK, they need to be capitalised upon, states SMMT.
The report states: “We need a national industrial vision for green growth and, specifically for the automotive industry, a dedicated and comprehensive transformation strategy to actively and visibly position and deliver the UK as one of the world’s most competitive locations for advanced automotive manufacturing.”
According to the report, such a strategy should be ambitious and pragmatic, focusing on strategic government orchestration with active delivery at pace.
“It is not a return to the dark days of protectionism, but looking to a brighter, greener future through the lens of realism. As such, the strategy must have a relentless and razor-sharp focus on enhancing competitiveness and stimulating growth, which are critical factors in attracting investment and levelling the playing field for UK Automotive.”
Through the report, the Society sets out a transformation strategy that identifies investment, regulation and trade as the key pillars to anchor future EV production in the country.
According to the report, de-risking private capital with more competitive incentives and action on energy costs, with support for the next British ‘unicorns’ in batteries and renewables, would stimulate greater investment in EV enterprises.
Reform of regulation would accelerate delivery of new production facilities and renewable energy generation, while maximising trade opportunities, while also helping to secure access to essential raw materials.
These moves form the basis of the Society’s call to action, aiming to secure essential gigafactories that can underpin EV production.
In announcing the call to action, Mike Hawes, SMMT chief executive, said, “Britain boasts a firm foundation of EV production, backed by low carbon energy, outstanding R&D and a highly skilled and productive workforce. We must not squander these advantages.
“With other parts of the world turbocharging their support for the zero emission vehicle transition, we need to step up to compete in this global race. Every part of the country has a stake in the switch and with fast, decisive action we can deliver for Britain the growth, jobs and green prosperity this country deserves.”
