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How investment is resetting the UK auto manufacturing narrative

8 Sep 2023

As temperatures soared across the UK this week, the automotive industry enjoyed its own heatwave. The end of the summer recess saw a flurry of good news: the UK re-joining the EU鈥檚 scientific research scheme, Horizon; government funding allocations for battery and CAM supply chain development; and the opening of the UK鈥檚 biggest EV charging hub in Birmingham.

But the most highly anticipated event was yesterday鈥檚 landmark start of production at Britain鈥檚 first ever dedicated electric vehicle factory. The transformation of Stellantis鈥� sixty-one-year-old Ellesmere Port plant is a major boost for the UK鈥檚 manufacturing base, skills, jobs and trade and, following Tata鈥檚 decision to build its first battery gigafactory in the UK, resets the industry鈥檚 narrative as a global EV manufacturing player. Now we need government to seize this momentum with a strategy to shore up our competitiveness and promote the UK鈥檚 clear strengths overseas.

There was further good news for the van sector on Tuesday, as we announced the UK market鈥檚 eighth month of growth in August, with electric van demand up by almost a fifth. The new car market, meanwhile, entered its second year of growth 鈥� powered again by robust demand for EVs. Zero emission cars accounted for one in five registrations 鈥� a record for August.

It鈥檚 an impressive recovery for both markets, however, we鈥檙e not there yet. If we鈥檙e to deliver on decarbonisation targets, accelerating EV uptake at pace is now imperative. On 1 January 2024, the industry faces the double whammy of a Zero Emission Vehicle Mandate – for which there is still no regulation published – and potential tariffs on batteries and EVs if a solution cannot be agreed to delay new rules of origin thresholds.

Given the huge ramifications for manufacturing and markets on both sides of the Channel, we remain hopeful that pragmatism will prevail but also that the UK government urgently provides clarity on the Mandate. With less than four months to go, businesses can only proceed with the clarity of regulation not the uncertainty of consultation.

I was able to make these points at Wednesday鈥檚 evidence session as part of its inquiry into the EV transition. The inquiry focuses on the transition from the motorist鈥檚 perspective, but it was also important to underline the industry鈥檚 unwavering commitment, backed by extraordinary investment, to deliver net zero mobility.

With the date for the Autumn statement also announced this week, we look to the Chancellor to use his 22 November moment to announce that government will pull every lever 鈥� fiscal and otherwise – to ensure the industry鈥檚 long-term competitiveness and drive sustainable, green mobility for the UK.

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