Recently, the UK auto industry urged the government to move quickly to promote the transition of the sector to the manufacturing of electric vehicles (EVs). This includes support for high energy prices, tax reform, and investment in charging infrastructure.
The UK auto industry is transitioning away from fossil fuel technology. Now, expectedly, is facing numerous threats. The Society of Motor Manufacturers and Traders (SMMT), says the producers face economic instability, trade protectionism, and regulatory change. Also, they calculate a cost-of-living crisis, skills shortages, and soaring energy costs.
Brexit costs more than expected – EVs industry heavily affected
All in all, that’s already about 80% higher than the EU average. Brexit costs Britons much more than expected back then. Naturally, Brexit also affects the British auto sector.
Starting in 2024, an increasing percentage of an automobile must be built locally in accordance with rules of origin negotiated with the European Union. Therefore, there is pressure on Britain to develop its own EV battery supply network.
Britishvolt, a startup that has had trouble attracting investors, has only planned to build one factory. That’s a result of government efforts in the UK to support the EV battery business.
Some worry that if there aren’t enough battery plants, manufacturers may decide to leave, which would hurt the 170,000-person industry.
Britain must build its own electric manufacture
This occurs at the same time that the government of former Prime Minister Boris Johnson pushed for a 2030 UK ban on new combustion engine vehicles.
A government strategy to “guarantee competitiveness, attract investment, and foster skills, innovation, and long-term growth,” according to the SMMT, is what it wants.
According to the lobbying group, this should involve extended support for energy costs. They also want assistance for small and medium-sized businesses that are having financial difficulties. Tax reform to encourage investment is also needed, same as funding to hasten the development of EV charging infrastructure. Since there is a lack of skilled foreign workers after Brexit, the government has to support the development of a national skills platform.
Far east and EU EVs “drive” faster and cheaper, and are “speeding up”
According to SMMT Chief Executive Mike Hawes, the British EVs lobby require quick and clear action. They say the government must address the current problems. The other problem the government must solve is to provide an opportunity for British EVs companies to compete successfully on a global scale. The window of opportunity is still open, but it is rapidly closing. Far-east EVs “drive” faster and cheaper. EU producers are “speeding up” too.
For example, three new electric cars from Volkswagen’s Skoda brand will go on sale by 2026. It will happen four years sooner than expected. Also, most of the anticipated investment for the Czech automaker and Volkswagen subsidiary will go toward these new electric models.
On the other side, Asian automakers are continuing to produce parts for electric vehicles. They want to stay in the game with batteries for electric vehicles.
Perhaps the most discouraging for the British EVs makers is the fact of joining finances and capacities of EU and Far East manufacturers to produce electric vehicles better than American, cheaper than British.