Electric car manufacturers in the UK are urging all political parties to adopt five pledges to ensure £106bn growth in the EV industry by 2030.
As part of the ‘Manifesto 2030: Automotive growth for a zero emission future’ launched by the Society of Motor Manufacturers and Traders (SMMT), electric car manufacturers are calling on the government for vital changes to drive growth in the sector.
The Manifesto suggests that increasing battery electric vehicle (BEV) production to more than 750,000 units per year by 2030 – a ten-fold increase in current capabilities – would equate to £106bn worth of production value.
The electric car manufacturers believe that five key measures can drive EV uptake, combat the industry’s skills shortage, lower the cost of clean energy, and ensure British EVs can be sold globally.
Factors limiting the British EV industry
Electric car manufacturers explained that to capitalise on significant industry growth, it is essential that UK’s domestic EV supply chain is scaled up dramatically.
Although the industry has grown by 4% to support 208,000 jobs in the last year, other countries offer huge cash incentives and subsidies to attract green manufacturing, making it difficult UK industry to remain competitive on the global stage.
Moreover, potential tariffs on UK-EU trade for EVs are a major concern for UK electric car manufacturers. Such tariffs, which are set to come into action in six months, would make British-built EVs uncompetitive in the county’s largest export market and ramp up prices for consumers – impacting uptake.
Inflation is another important issue. Over 80% of the electric car manufacturers responding to SMMT’s latest automotive business confidence barometer noted that rising input costs are limiting profitability and investment despite rising demand.
Additionally, 90% of electric car manufacturers stated that energy prices are a limiting factor to investment, as the UK sector has more than double the electricity costs of its EU counterparts.
What actions are UK electric car manufacturers calling for?
The five pledges and policies that UK electric car manufacturers are calling for include:
- Publishing a Green Automotive Transformation Strategy to accelerate innovation, attract innovation, and secure manufacturing of clean technologies to enable zero emission mobility;
- Establish a reliable and affordable UK-wide recharging and refuelling network complemented by a motor tax and regulatory system;
- Create a national upskilling platform to develop the next generation of industry talent combined with greater STEM education in schools and an immigration system that attracts global expertise;
- Position supply chain at the core of UK trade policy and market access, securing tariff-free export of British-made vehicles, batteries, and green technologies, and offer support so that businesses of all sizes can succeed; and
- Promise that affordable and internationally cost-competitive zero emission energy is accessible and provide dedicated energy and investment to make zero emission vehicle productions possible.
Mike Hawes, SMMT Chief Executive, concluded: “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.”
