UK Automotive collaborates globally to compete globally
The UK may no longer be in the EU but our relationship with the bloc remains critically important. The issue of defence and security looks likely to dominate that relationship and rightly so but we must also remember that our sector, like many others, is integrated operationally, with, in our case, massive volumes of vehicles and components flowing in both directions. SMMT was, therefore, pleased to visit Brussels this week to meet with colleagues at ACEA and other stakeholders to discuss how we can ensure our sectors remain at the forefront of innovation and decarbonisation.
SMMT’s latest vehicle registration data published this week shows the challenges facing EU markets are shared by the UK. While caution must always be applied to February’s performance given its low volume and hence often volatile nature, overall demand fell for a fifth consecutive month. Good news came in the form of significant growth in battery electric uptake to account for a quarter of registrations, buoyed again by hefty manufacturer subsidies as well as a reaction by some buyers to April’s impending tax changes – a reaction expected to be reflected even more acutely in March.
In less than a month, many EV models will be subject to the punitive VED expensive car supplement, adding further pressure to the transition. Given even last month’s EV surge fell below the 28% market share mandated this year, we urgently need policies that encourage, not punish, buyers who want to do what government, industry and society’s ambition demands.
Accelerating EV demand is a global challenge and the UK’s world-leading ambitions mean market support must be equally bold. Meaningful fiscal incentives applied to consumer purchases, taxation and public charging are essential – alongside, as we have seen from the European Union this week, further flexibilities within existing regulation.
Britain’s automotive sector has many other global trading partners, including Turkey, where this week SMMT supported a Department for Business and Trade mission, including a series of strategic business meetings involving 12 different UK export companies. Another opportunity will follow in April when SMMT and UK businesses visit Kazakhstan, the largest economy and car market in Central Asia, for business meetings and Automechanika Astana.
International engagement comes closer to home at SMMT Electrified 2025 next week, with delegates representing nine different countries and regions flying into the UK to meet with SMMT members. As the UK industry’s flagship conference, Electrified will bring together 400 senior representatives – from automotive, government, infrastructure, energy, fleets, insurance and logistics, and more – to discuss how to make the transition an unequivocal success.
With an impressive line-up of panellists and keynote speakers, it is an event not to be missed and the final few tickets are available here: https://www.smmt.co.uk/event/smmt-electrified-2023/