British car production dipped 2.1% in January according to figures released by the Society of Motor Manufacturers and Traders yesterday.
Reduced demand from car manufacturing plants and additional shutdowns related to the coronavirus pandemic have caused the fifth successive month of decline. A global snowball effect is expected to continue as the industry anticipates the upcoming budget.
This highlights the industry’s over-reliance on key components from the Far East, and how this can be unstable for the British supply chain and the economy as a whole. With the transition to electrification accelerating, UK manufacturers are now calling on the government to invest and stimulate the market.
Kevin Brundish (right), CEO of electric vehicle battery manufacturer AGM Batteries, now warns that the UK must prioritise the creation of an on-shore, full cycle supply chain if the manufacturing sector is to grow and meet the growing demand for electric vehicles and energy storage.
Kevin observes that this would not only stimulate the economy and create jobs, but is more eco-friendly and avoids reliance on unpredictable external factors such as coronavirus.
He said,“The electrification of vehicles is a crucial factor in achieving the UK’s carbon neutral 2050 targets. In order to meet the unprecedented demand for electric vehicle battery production, the UK will need the equivalent of a staggering eight 15GWh Gigafactories by 2040.
“With battery demand for the automotive and energy storage market set to skyrocket, leading British manufacturers like ourselves are hoping for investment in the infrastructure needed to service the industry. The UK’s economy can be boosted with manufacturers who are able to keep up with the huge expansion of this market and create jobs.”