Engineer – The next government can help the automotive sector realize its full potential

The invitation from the Society of Motor Manufacturers and Traders (SMMT) follows the publication of the industry body’s report ‘Vision 2035: Ready to Thrive’, which predicts that millions more drivers will switch to zero emission vehicles with the right support.

SMMT research shows that targeted policy will lead to the value of the new car market increasing from just over £70 billion a year today to almost £80 billion a year over the next decade, with over 17 million fossil fuel cars replaced by vehicles with low energy consumption by the end of 2035 zero emissions. At the same time, more than one million passenger cars and commercial vehicles could roll off production lines annually, increasing the value of the sector by five percent compared to current forecasts.

The report sets out a cross-party plan to strengthen the market, expand British trade, upskill the workforce, deliver cheap, low-carbon electricity and implement an industrial transformation strategy that will enable the UK to achieve a net zero future.

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Market modeling shows that halving VAT on new retail purchases of electric vehicles over the next three years would add an additional 300,000 new zero emission car registrations on SMMT’s current projections, putting 2.3 million new zero emission cars on the road. zero emissions during this time.

According to the SMMT, this would have a snowball effect on the UK’s transition to net zero, accelerating the overall growth in electric cars over the next decade to more than 17 million and delivering £800 billion in revenue. As a result, half of all cars in use would be zero-emission by 2035, resulting in a cumulative reduction in car emissions of 175MtCO2.

At the same time, actions to increase the UK’s global competitiveness in light vehicle manufacturing will result in over nine million zero emission passenger cars and vans leaving UK factories by the end of 2035, generating over £290 billion in revenue at ex works prices , which is a five percent increase over current forecasts.

In a statement, Mike Hawes, SMMT chief executive, said: “The UK automotive sector has proven its resilience throughout the recession and pandemic. Now it is ready to grow. As voters prepare to cast their ballots next week, the next government will have the power to unlock the sector’s potential, boost the economy, create jobs and reduce greenhouse gas emissions.

“The industry’s vision is green growth and a just transition for all. Whoever forms the next government, we urge them to create the conditions that will allow us to fulfill our promise.”