Growing pains are inevitable as automotive manufacturers ramp up the transition to zero emission vehicles and, with significant retooling underway in UK factories, the publication of SMMT’s annual production figures this week revealed no real surprises. Car production is at its lowest level for some 70 years as manufacturers turn more than £20 billion of EV and gigafactory investment plans into new models and output. While temporary pauses in production across various production lines and models may not look like good news, the foundations are being laid to kickstart a new generation of growth.

Britain can attract such major investment in the global EV transition but we must create the right conditions. The chancellor’s speech this week was welcome given its focus on growth, boosting investment and confidence. That focus must now be formulated into industrial and trade strategies that protect existing investments and encourage more. Businesses must choose the UK over other countries, all vying for attention in an increasingly protectionist landscape. Both strategies are increasingly urgent to deliver competitive manufacturing conditions – more affordable green energy, an upskilled workforce, measures that support a thriving SME ecosystem and a vibrant domestic EV market, and free and fair trade deals – new and improved ones – for mutually beneficial growth. Given around eight in 10 cars and six in 10 commercial vehicles made in the UK were exported last year, the potential for growth is clear.

Those competitive conditions are also pivotal for a vibrant automotive supply chain, given it is symbiotic with successful domestic vehicle manufacturing, trades internationally and employs thousands of people across every region. The UK’s 2,500-strong supplier base produces almost every component needed to make an EV, so promoting partnerships can help catapult our sector’s growth.

After a series of international SMMT activities in January, therefore, we were delighted to stage our first SMMT Regional Networking of the year this week, hosted at an aerodynamics engineering and design consultancy in Northamptonshire. With a broad range of SMMT members, from global brands to SMEs, the event was a key chance to network and find prospective partnerships to drive new business opportunities in 2025.

Just like the government, growth is the number one mission for our industry and every lever must be pulled to make it happen. Crystal clear and sustainable strategies – for manufacturing, trade, skills and the supply chain – can lay the foundations to drive that growth.