SMMT Update – Getting Britain buying – while building – more EVs
Helping more drivers understand the benefits of going electric is essential if the UK is to meet its ZEV ambitions so government’s new public campaign, launched this week, is timely and welcome – helping encourage consumer confidence by cutting through persistent myths while setting out the many advantages that EVs offer. It will highlight the massive vehicle choice on offer too, with more than 160 different EV models across all segments. But while clear information is vital, so are meaningful signals that give motorists no doubt now is the time to switch.
The Electric Car Grant is helping but manufacturers are still having to provide billions in EV discounts, with an unparalleled £5 billion spent last year alone. This is patently unsustainable. Furthermore, the impact of government and industry investment will be diminished by a new disincentive – the proposed eVED tax. With EV demand below the levels targeted by the ZEV mandate last year, and this year’s target even steeper, a review of the transition – looking at demand as well as cost and the broader ecosystem – must be brought forward to ensure ambition aligns with natural market demand.
The importance of market decarbonisation is undoubted, but the UK must also ensure it remains a place for making vehicles. That requires a business environment that safeguards our existing manufacturing base while attracting new investment, with local battery output particularly important to underpin future EV production. This week’s report by the UK Commission on Gigafactories includes some welcome recommendations for Britain to compete globally, including lower energy costs, skills support and investment in critical materials and recycling, all of which are essential if we are to produce the 1.3 million vehicles by 2035 envisaged in the Industrial Strategy.
Strong trade partnerships are also critical for attracting new investment in today’s uncertain international landscape, and SMMT was delighted to meet Germany’s automotive association VDA in Berlin last week, alongside UK and German government and industry representatives, to discuss the global challenges and opportunities we share. As highly integrated and interdependent automotive industries, particularly for zero emission vehicles, both sides must safeguard our trade cooperation and supply chains.
The UK automotive industry is rapidly seeking new solutions and will be more successful in doing so by having diversity in experience, ideas and leadership, which this year’s Autocar Great Women Awards will champion again with SMMT as a founding sponsor. The awards highlight the skill and opportunity our industry offers, celebrating the achievements of women across every part of the sector – from manufacturing and R&D to retail, marketing and communications, and at every level from apprentice to executive leader. Ensuring our sector is recognised as a dynamic, inclusive and forward-looking place to work is essential, and I would encourage everyone to consider applying here.