Automakers warn the UK needs to ‘become more competitive’ in electric vehicle production

The government must act urgently to respond to “tough competition” from other countries, the Society of Motor Manufacturers and Traders (SMMT) said.

Reducing energy costs, accelerating financing for green technology projects and expanding free trade agreements are among the measures included in a draft SMMT that outlines how to boost electric vehicle production.

The Green Automotive Transformation Strategy also calls for more generous subsidies and a reduction in bureaucracy for proposed battery production programs.

The SMMT claimed their plan would position Britain as one of the world’s most competitive locations for advanced car manufacturing.

It stressed the need to respond to the Inflation Reduction Act in the US and the Green Deal Industrial Plan in the European Union, both of which called for steps to increase EV production.

Fully electric or hybrid vehicles accounted for almost a third of all cars built in Britain last year, with an export value of £10 billion.

Mike Hawes, CEO of SMMT said: “The UK has a solid base for electric vehicle production, backed by low carbon energy, excellent R&D (research and development) and a highly skilled and productive workforce.

“We must not squander these advantages. As other parts of the world ramp up their support for the zero-emission vehicle transition, we need to step up our game to keep up in this global race.

“Every part of the country is involved in the transition and with swift, decisive action we can deliver the growth, jobs and green prosperity this country deserves in Britain.”

From 2030, the sale of new petrol and diesel cars and vans will be banned in the UK.