The Society of Motor Manufacturers and Traders (SMMT) has published a new blueprint for the UK’s electric vehicle (EV) sector which warns that the UK’s ability to compete as an EV production leader is “at risk.”
According to the blueprint, over £11 billion has been invested by manufactures in UK EV production, powering the market’s growth so that last year electric and hybrid vehicles comprised almost a third of all UK-built cars, generating an export value of £10 billion.
This upward trajectory is set to continue as SMMT predicts that the UK will produce over 20 models of electric cars, vans, buses and trucks by 2025.
The UK is an EV manufacturing hub with seventeen of the world’s biggest automotive suppliers having a UK base and a 25% increase in the number of UK EV supply chain businesses in the last five years.
Additionally, SMMT’s EV Supply Chain Dictionary revealed that Britain produces almost every component required to manufacture EVs with production taking place nation-wide.
The UK’s position as a leading EV market is threatened however, as other countries significantly bolster their political and economic backing of electric transport, presenting increasingly attractive opportunities for investors.
Such policies include the US $370 billion (£304 billion) Inflation Reduction Act and the EU Green Deal Industrial Plan.
To address this, SMMT’s blueprint lays out a ‘Green Automotive Transformation’ strategy to help secure the UK’s position as one of the most competitive EV manufacturing locations in the world.
To anchor EV production in the UK, the strategy identifies three key pillars: investment, regulation and trade.
In order to stimulate investment in the UK’s EV sector, SMMT suggested de-risking private capital, creating more competitive incentives as well as supporting the nation’s future EV ‘unicorns.’
SMMT also recommended reforming regulation to accelerate the delivery of new production facilities and maximising trade opportunities to secure essential raw materials.
“Britain boasts a firm foundation of EV production, backed by low carbon energy, outstanding research & development and a highly skilled and productive workforce,” said Mike Hawes, chief executive at SMMT.
“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.”