The UK automotive industry is calling on all political parties to support its new roadmap towards sustainability and international competitiveness. The sector has issued a manifesto detailing its ambition for a 10-fold increase in annual battery electric vehicle (BEV) production, aiming to reach over 750,000 units per year by 2030. This transformative production scale-up would equate to a cumulative £106 billion worth of products at the factory gate.
Society of Motor Manufacturers and Traders (SMMT), at its International Summit in London on June 27, 2023, launched the “Manifesto 2030: Automotive growth for a zero emission future.” The body urged all parties to acknowledge the strategic importance of the automotive industry to the UK and help create favourable conditions to realise these goals.
However, these ambitious growth plans are contingent upon the UK’s ability to attract the next generation of electric models and bolster the emerging EV supply chain. Despite a robust recovery post-pandemic, the sector faces intense global competition as countries lure green manufacturing with cash incentives and subsidies.
Furthermore, the looming threat of tariffs due to local content rules in the UK-EU trade deal, which take effect in six months, could significantly disadvantage the British industry. If not resolved, these tariffs would render British-made EVs uncompetitive in their largest export market, raising prices for domestic buyers.
“Over 80 per cent of companies are reporting rising input costs, limiting profitability and investment, despite an increase in orders and output,” says the SMMT. The industry also faces electricity costs more than double those of its EU counterparts, complicating investment in renewable energy.
Yet the UK’s automotive sector remains resilient. It boasts a diverse nationwide supply chain, a highly skilled workforce, iconic brands, and robust R&D capabilities. The sector contributes £16 billion to the economy, with an annual turnover of £78 billion, and invests around £3 billion annually in R&D. Presently, the sector supports 800,000 jobs, spanning manufacturing, retail, and the aftermarket.
SMMT’s Chief Executive, Mike Hawes, voiced his expectation of political parties: “We are in the middle of the most fiercely competitive investment landscape of a generation and need a UK response, urgently, using every policy, fiscal and regulatory lever, to make Britain the most attractive place to invest.”
The industry urges political parties to commit to five pledges and policy actions that align with a green automotive transformation strategy, an all-inclusive net-zero mobility policy, an upskilling platform for green skills, improved positioning of the automotive sector in UK trade policy, and investment in affordable zero-emission energy for the automotive sector.
The call to action is clear: the UK automotive industry is ready to rise to the challenges of the green revolution, but only with the active backing of political parties.
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