The UK’s car lobby urged the government to take action to help the industry transition to EV production, which includes support for tax reform, high energy costs, and charging infrastructure investment, according to Automotive News Europe.
The Society of Motor Manufacturers and Traders (SMMT) said the UK auto industry faces “multiple threats” as it moves away from fossil-fuel technology, including regulatory change, skills shortages, soaring energy costs, trade protectionism, a cost-of-living crisis, and economic instability already some 80% higher than the European Union average.
Britain under pressure to develop EV battery supply
In addition, Britain’s car industry faces a Brexit-related challenge. Under the rules of origin agreed with the EU, beginning in 2024, a growing proportion of a car must be produced locally.
Therefore, Britain is under pressure to develop its own electric vehicle battery supply chain.
UK government efforts to promote an EV battery industry have led to one factory project by Britishvolt, a startup that struggled to take off with investors.
Some fear automakers can leave without sufficient battery plants, hitting an industry that employs around 170,000 people.
No new combustion engine models by 2030
This follows as the government under former Prime Minister Boris Johnson pushed for a ban on new combustion engine models by 2030.
The SMMT noted it wanted a government plan to “attract investment, ensure competitiveness, and drive innovation, long-term growth, and skills.
We need swift and decisive action that addresses the immediate challenges and gives us a fighting chance of winning the global competition. That window of opportunity is open but is closing fast.
SMMT CEO Mike Hawes
Furthermore, the lobby group stated that it should include “extended support” for energy costs, aid in struggling small and medium-sized businesses, the creation of a national skills platform, tax reform to encourage investment, and investment to accelerate the creation of EV charging infrastructure.
