The Society of Motor Manufacturers and Traders (SMMT) have highlighted that, unless the Government respond to the increase in international competition, the UK will struggle to compete as an electric vehicle (EV) production leader.

Within their appeal, SMMT have highlighted America’s Inflation Reduction Act as an example of how other countries support their EV sectors. The Inflation Reduction Act subsidises the cost of building EV’s for US manufacturers, ranging up to $7500 for plug-in hybrid and electric cars. In addition to this, electric commercial vehicles can receive a subsidy of up to $40,000 to manufacture.

SMMT have designed a blueprint to help the UK compete in this competitive market, including a ‘Green Automotive Transformation’ strategy which would position Britain as one of the world’s most competitive locations for advanced automotive manufacturing.

To invigorate great investment into the EV sector, SMMT propose de-risking the private capital by offering more competitive incentives and action on energy costs. Alongside de-risking the private capital, SMMT have also advised reforming regulation and maximising trade opportunities in order to improve the UK’s EV manufacturing.

Mike Hawes, SMMT Chief Executive commented on the blueprint, saying “Britain boasts a firm foundation of EV production, backed by low carbon energy, outstanding R&D and a highly skilled and productive workforce. We must not squander these advantages. With other parts of the world turbocharging their support for the zero-emission vehicle transition, we need to step up to compete in this global race. Every part of the country has a stake in the switch and with fast, decisive action we can deliver for Britain the growth, jobs and green prosperity this country deserves.”

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Turbocharge UK competitiveness to win Race to Zero prize, auto industry urges – SMMT