A new multi-pronged plan to revive the UK’s floundering car industry could inject an additional £50 billion into the economy over the next decade, coming alongside investment by the government as part of its new Industrial Strategy.
At the Society of Motor Manufacturers and Traders’ (SMMT’s) annual International Automotive Summit, the UK car industry set out the details of its ‘Competitive Edge’ report. This outlines the key changes that need to be implemented in order to propel the nation to become one of the world’s top 15 forces for automotive manufacturing.
Of the 10 main points highlighted, the most crucial involve reducing energy costs – which have recently been squeezing makers’ profit margins as electricity prices soar and EV manufacture requires more power – driving consumer demand for electric vehicles, and securing investment from overseas.
As part of the report, the SMMT once again restated its wish for the Government to implement further changes and fiscal incentives beyond those already outlined in the ZEV (zero-emission vehicle) mandate; industry leaders want the Government to slash VAT on both the purchase of new electric cars for private buyers, as well as that on public charging.
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Auto Express asked whether, at this stage and with the tight-stringed nature of the public purse, whether such an introduction would be realistic – and SMMT chief executive Mike Hawes admitted that getting any of its wishes in this regard would be “rather optimistic”.
