The Chief Executive of the Society of Motor Manufacturers & Traders (SMMT) has said that the UK needs a “comprehensive plan” if it is to emerge as a frontrunner in the automotive industry in 2025.
In his latest CEO update on Friday, Mike Hawes said:
With global competition only going to heat up in 2025 as countries vie for major new automotive investment, the UK must get on the right track and quickly. Ensuring we have a vibrant domestic market is crucial, which is why industry welcomed government’s review – published on Christmas Eve – of the end of sale date for cars powered solely by petrol or diesel, as well as possible changes to the flexibilities around the Zero Emission Vehicle Mandate. Both are critical issues for a global industry facing significant challenges as it tries to decarbonise ahead of natural market demand. The UK is seeking to be among the first countries to do so but the costs are massive – not “just” the billions already invested in new technologies and products, but also EV discounting to the tune of £4bn last year alone.
Such levels of discounting are unsustainable so it is imperative we get a fast turnaround to this consultation. The regulation needs to be adapted to support delivery, backed by bold EV incentives to stimulate demand, faster chargepoint infrastructure rollout, and more affordable charging. Such action will support not only the industry but the economy, the motorist, government and the environment.
UK success in overseas markets is also important given automotive is our country’s largest exporter of goods by value. Britain’s new trade strategy, therefore, should have at its heart the world-class automotive products being developed and manufactured here, with beneficial free and fair trade deals opening doors in existing and emerging markets. The prize is significant and, as part of a wider industrial plan, could amount to £50bn growth in the next decade.
There is no time to waste for UK businesses and next week SMMT will host stakeholders at CES, the consumer electronics trade show in Las Vegas which is increasingly becoming an automotive show, given the tech platforms underpinning modern vehicles. The show is a prime opportunity to make new autotech partnerships and showcase the innovation for which Britain is globally renowned.
There’s expected to be a major focus on connected and automated cars and commercial vehicles in Las Vegas, with huge growth potential in both markets – and the UK can be among the first countries to seize that growth potential. Indeed, another wish for 2025 is an acceleration of secondary regulation proposed in the Automated Driving Act 2024, passed prior to the General Election. Getting these statutory instruments drafted and into law will help create the legal framework for the safe and successful commercial rollout of these technologies, on our roads and in our businesses, giving the UK a global competitive advantage.
Later in January, SMMT will host a webinar for members to explore new growth in Thailand, and we will then support the Department of Business and Trade’s mission to India’s Bharat Mobility Global Expo in New Delhi. These engagements are evidence of the resources UK businesses are committing to international expansion. We all want to grow our domestic market but being competitive as an entire industry will create multiple opportunities globally, opportunities that we can seize with the right trade strategy.
With a comprehensive plan – incentives, infrastructure, an industrial strategy, a trade strategy – all bets could be on a winning 2025 for the UK.
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