Making EV growth an industrial opportunity
March’s new vehicle market is an all‑important indicator of consumer confidence so new SMMT data published this week showing 6.6% growth for cars is welcome news. A new record for battery electric car uptake is also positive, but these headline figures belie major challenges facing our sector – not least the widening gap between ambition and performance, with a Q1 BEV share of 22.4% far below the 33% mandated for 2026. The shortfall in the new van market is even more acute, with March BEV uptake falling -15.9% to a 7.1% share – less than a third of the 24% mandated this year.
Industry has invested billions in EV model development, and billions more in customer discounts to try to meet the UK’s ZEV mandate, but the landscape remains much tougher than anticipated when the regulation was conceived. The increased pressure of geopolitical events makes a review of the UK’s transition even more urgent – and it must reflect market realities and industrial challenges, else long-term investment in Britain’s green growth will be jeopardised.
With the right strategic approach, however, decarbonisation can be an economic opportunity. New SMMT analysis shows that as manufacturers accelerate electrification, demand for UK‑built components could rise by 80% by 2030 – unlocking a massive £4.6bn domestic supply chain opportunity. Safeguarding that investment, and attracting more, is a top priority for government and the £380m commitment for one of Europe’s largest gigafactories in Somerset confirmed this week – supporting £4bn in private investment – is timely and significant. Further backing announced yesterday for the DRIVE35 and CAM Pathfinder programmes will help Britain reap the rewards of its world-renowned automotive R&D ecosystem – driving job creation and economic growth. These measures, as part of a modern Industrial Strategy, boost the UK’s global competitiveness and investment appeal.
The industry shares government’s ambition to return the UK to an annual 1.3 million vehicle production hub by 2035 – and SMMT will continue to champion that mission. We were pleased to launch our new Opportunity Auto campaign this week, promoting global business partnerships and supporting the case for a new wave of inward investment into Britain’s automotive manufacturing base. That case, as we have seen this week, is only strengthened when government and industry work collaboratively both at home and, critically for investment, abroad.