UK automotive industry calls for cross-party support as ‘£106bn EV prize’ is up for grabs
SMMT is urging parties to support its five pledges to drive the transition to electrification.
The UK automotive industry is calling on political parties to adopt its five pledges as it transitions to electrification.
The Society of Motor Manufacturers and Traders (SMMT), which represents the industry, says it wants political parties to ‘recognise the strategic importance’ of the segment in the UK’. It also says that there is a ‘£106bn prize up for grabs’ between now and the end of the next parliament in 2030.
It hopes the five pledges would create conditions to allow a 10-fold increase in the production of EVs in the UK, though it’s based on manufacturers committing to making their next-generation products in Britain.
There is continued uncertainty over whether current carmakers will continue to produce their EVs in the UK. The SMMT says that the UK faces ‘fierce global competition’ as other countries offer big cash incentives to attract firms to produce their EVs.
Stellantis, which operates two sites in the UK – one in Ellesmere Port, Cheshire and another in Luton – warned last month that post-Brexit trading agreements risk it moving production.
The SMMT’s five pledges include a ‘Green Automotive Transformation Strategy’ that pushes firms to reach net zero and attract investment, as well as enabling an affordable and reliable UK recharging network.
Third, it wants greater education from a school level to enable a future workforce equipped with the skills to produce EVs, while fourth is to position automotive supply chains at the core of UK trade policy. This will also include tariff-free exports of British-made EVs and technologies. The last pledge is to ensure that the automotive industry can access affordable zero-emission energy.
Speaking today at the automotive industry’s annual summit, Mike Hawes, chief executive of the SMMT, said: “The Government has set the industry tough targets and we are committed to meeting them. But we are in the middle of the most fiercely competitive investment landscape of a generation and need a UK response, urgently, using every policy, every fiscal and regulatory lever, to make Britain the most attractive place to invest.
“The automotive industry rises to every challenge, so we set out today a challenge to all political parties: back us with the right conditions and we will turn our obligations into opportunities for our industry, for jobs, for the environment and for the UK.”
At today’s conference, Labour will set out various measures it would implement to ‘turbocharge’ EV production.
Shadow transport secretary Louise Haigh will tell the SMMT event: “Labour are urging the Government to prioritise an agreement with the European Union to ensure manufacturers have time to prepare to meet rules of origin requirements and make Brexit work for them.
“But let’s be clear: it’s the Government’s own failures that have made securing a deal necessary. They have had years and years to ramp up the UK’s battery capacity and have failed.
“And while the Conservatives stand back, Labour in government will turbocharge the transition to electric vehicles and create the conditions for our proud car industry to not just survive the enormous upheaval of the decade ahead, but thrive.”
