Turbocharge UK competitiveness to win Race to Zero award, automotive industry demands

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A new plan highlights Britain’s advantages in investing in electric vehicles, but warns of fierce competition as other countries boldly back their own industries. Almost all EV components already built in UK factories, but need to ramp up capacity rapidly to ensure a long-term future. The industry urges the government to support the $67 billion auto sector and present a positive narrative to the world to win green growth, jobs and prosperity. The sector is defining a green automotive transformation strategy in response to global competition for the production of electric vehicles.

Britain’s ability to compete as a leader in electric vehicle (EV) production is at risk unless the government urgently responds to increasingly fierce international competition, warns the Society of Motor Manufacturers and Traders (SMMT) in a new plan released today. The call comes as other countries are dramatically boosting political and economic support for their own auto sectors, positioning themselves at the front of the queue for investment.

Race to Zero: Powering Up Britains EV Supply Chain exposes the UK’s intrinsic strengths in advanced car manufacturing, low-carbon energy and R&D, but highlights the need for an urgent response to initiatives such as the US $370 billion Inflation Cut Act and the EU Green Deal Industrial Project. The plan sets out a green car transformation strategy that would position Britain as one of the world’s most competitive locations for advanced car manufacturing, matching its world-leading ambition to end the sale of cars and non-zero emission vans in 2035.

The strategy identifies investment, regulation and trade as key pillars to anchor future vehicle production in Britain. De-risking private capital with more competitive incentives and action on energy costs, with support for Britain’s next unicorns in batteries and renewables, will spur greater investment in EV companies. Regulatory reform will accelerate the delivery of new generation facilities and the production of renewable energy. In the meantime, maximizing trade opportunities would help secure access to critical raw materials. Such measures will secure critical gigafactories that can support the production of electric vehicles.

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The UK must act on the significant progress made by the domestic automotive sector and supply chain and its inherent benefits. To date, more than £11 billion has been invested by manufacturers in local electric vehicle production, leading to fully electric or hybrid vehicles accounting for almost a third of all cars built in the UK last year, with an export value of 10 billion.1 By 2025, the sector is expected to produce more than 20 models of electric cars, vans, buses and trucks, contributing to the economy and the employment in all regions of the country.

Meanwhile, every part of the UK contributes to the electric vehicle supply chain, with a 25% increase in the number of such companies over the past five years.2 Seventeen of the world’s largest automotive suppliers have a base in the UK,3 and a new SMMT EV supply chain directory reveals that Britain produces almost all the components needed to manufacture the zero-emission vehicles of tomorrow in some capacity. From batteries, powertrains, fuel cells and power electronics to anodes, rare earth magnets, graphene and silicon carbide wafers, UK capacity can and must be increased rapidly.

British-built electric vehicles and their components also benefit from greener production, with the UK ranking seventh out of the world’s top 20 car-making nations for low-carbon power. Indeed, UK power generation emissions are around 17% lower than the EU average and lower than Germany, the US, Japan and China.4

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Britain also ranks highly for university-industry R&D collaboration, a vital relationship in the development of new technologies for zero-emission vehicles. Add to that our highly skilled and flexible workforce, unquestionable engineering excellence, and a technology-embracing market and consumers, and the UK has a lot to offer. Industry and government must build on these foundations, enhancing Britain’s attractiveness as an investment destination for the production of electric vehicles and components.

Mike Hawes, Managing Director of SMMT, said:

Britain has a strong electric vehicle production base, backed by low-carbon energy, exceptional R&D and a highly skilled and productive workforce. We must not waste these benefits. As other parts of the world increase their support for the transition to zero-emission vehicles, we must step up our efforts to participate in this global race. Every part of the country has a stake in change and with quick and decisive action we can give Britain the growth, jobs and green prosperity this country deserves.

Notes to Editors

1. Based on SMMT analysis of publicly announced investments made or guaranteed by car manufacturers and battery producers in UK R&D and production since 20112. 1673. SMMT Automotive Facts 20224. Our World In Data: mix global electric

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