Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), has called for the inclusion of purchasing incentives and support for the automotive sector in the upcoming UK budget, Kallanish reports.
Hawes says the UK Budget on 30 October is an opportunity to remedy poor consumer confidence and help support the transition to electric vehicles with purchase incentives and infrastructure investments.
He recommends the UK government cuts VAT on EVs and public charging, delays certain VED changes and invests in charging infrastructure.
Hawes adds the recent launch of the UK’s industrial strategy, and green paper, “presents a fresh opportunity to turbocharge UK industrial and economic growth”.
He adds the opportunity for the automotive sector to deliver an economic boost of more than £50 billion ($65 billion) during the next decade will not be available forever, with global competition fierce with countries seeking to attract new investment.
“Fast-tracking the delivery of new technology skills, green infrastructure and strengthened trading relationships are all fundamental. Crucially, so is a healthy domestic market for zero emission vehicles, given the type of investment we have secured in the past year or so and the undoubted commercial benefit for manufacturers of making close to where you sell,” he says.
“We look forward to working with government, therefore, to help steer its industrial strategy and the once-in-a-generation manufacturing transition it can deliver – but our markets must transform alongside it,” he adds.
“We cannot do one and not the other. If we succeed, the benefits are huge: new jobs and skills across all parts of the country; thriving innovation in all vehicle sectors, which support so many other UK industries; cleaner air and quieter streets; and economic growth that benefits everyone,” Hawes concludes.
SMMT reported September new car registrations saw their highest level since 2020, driven by massive EV manufacturer discounting, but figures were still almost 20% below the levels seen pre-Covid.
Battery electric vehicles accounted for 20.5% of the market share in September, plug-in hybrids took 8.9%, while hybrid electric vehicle had 14.2%. Despite a decline in petrol and diesel registrations, together they still accounted for 56.4% of buyer’s choice.
UK vehicle production stood at 1.02 million units in 2023, well below the 1.3 million produced in 2019.
Carrie Bone UK
