UK Automotive Industry Urges Action on EV Targets and Energy Costs
The UK's automotive industry has called for urgent government action, warning that current electric vehicle (EV) sales targets, high energy costs and growing trade barriers are putting investment, manufacturing and jobs at risk.
In its latest State of the Automotive Nation report, the Society of Motor Manufacturers and Traders (SMMT) said immediate reform of the Zero Emission Vehicle (ZEV) Mandate is needed, arguing that regulation is running ahead of consumer demand. Every automotive business leader surveyed said the UK is currently off track to meet its 2030 ambitions, with almost three-quarters believing the country is significantly behind.
Manufacturers say they remain committed to net zero and have invested billions in zero-emission technologies, but have been forced to offer substantial discounts to stimulate EV sales. According to the SMMT, car makers have already spent more than £12 billion supporting the market, funds it says could otherwise have been invested in new vehicles, manufacturing and jobs.
The industry body also warned that rising energy and operating costs continue to undermine the UK's competitiveness. While welcoming recent measures to reduce industrial electricity costs through the government's Industrial Strategy, the SMMT said further action is needed to make the UK a more attractive location for automotive investment.
Trade is another growing concern. The report warns that proposed EU "Made in Europe" rules and tougher post-Brexit rules of origin could significantly affect UK vehicle exports. Without an agreement, the sector estimates new tariffs could add around £1.4 billion in costs from 2027, affecting billions of pounds of electric vehicle trade between the UK and EU.
SMMT Chief Executive Mike Hawes said the UK automotive sector can continue to support economic growth and the transition to net zero, but only if policymakers deliver competitive energy costs, open trade and a more realistic pathway for increasing zero-emission vehicle uptake.