UK auto industry calls for "urgent response" to global EV competition

London – The UK government has been urged to step up its efforts in backing the automotive industry to lead the global race to zero emissions.

Industry association, the Society of Motor Manufacturers and Traders (SMMT) has published a blueprint, setting out the UK’s strengths in automotive manufacturing and calling for “urgent response” to global initiatives that may put the industry’s competitive edge at risk.

These, said SMMT in a 13 March statement, include the $370 billion (€350 billion) 'inflation reduction act' by the US and the EU's 'green deal industrial plan' which could undermine the UK’s current standing.

According to SMMT, the blueprint offers a ‘green automotive transformation strategy’ that would position the UK as “one of the world’s most competitive locations for advanced automotive manufacturing.”

The strategy identifies investment, regulation and trade as the key pillars to anchor future vehicle production in the country.

Among other measures, SMMT called for ‘de-risking private capital’ by offering more competitive incentives and action on energy costs.

In addition, the association urged the government to support “the next British unicorns” in batteries and renewables to further stimulate greater investment in EV enterprises.

Another area will be to reform regulations to accelerate delivery of new production facilities and renewable energy generation.

According to SMMT, the UK automotive sector currently benefits from ‘inherent advantages’ such as local supply chain and the low-carbon energy production in the country.

“Every part of the UK contributes to the EV supply chain, with a 25% increase in the number of these businesses in the last five years,” said SMMT.

Furthermore, the association noted that 17 of the world’s biggest automotive suppliers have a UK base, and the UK produces “almost every component required” to manufacture zero emission vehicles.

But to maintain the position, SMMT recommended that UK capabilities ‘can and must be’ scaled up in production of all elements.

These, it said, include batteries, powertrains, fuel cells and power electronics to anodes, rare earth magnets, graphene and silicon carbide wafers.

To date, more than £11 billion (€12.5 billion) has been invested by manufacturers in EV production in the UK, with green vehicles comprising almost a third of all locally built cars last year.

In terms of value, the sector exported £10 billion worth of new-energy vehicles.

“Britain boasts a firm foundation of EV production, backed by low carbon energy, outstanding R&D and a highly skilled and productive workforce,” said Mike Hawes, SMMT CEO.

“We must not squander these advantages,” he added, calling for a “fast, decisive action” by the government to deliver growth.