Government has recognised the importance of the automotive sector, said SMMT ceo Mike Hawes.
It is now at the centre of its long-term Industrial Strategy – and has published its first quarterly progress update, including more than 50 cutting-edge auto projects securing £70 million in innovation funding.
Such commitments will drive greater returns for the UK, but with global competition coming thick and fast, deploying the remainder of the £2.5 billion DRIVE35 at pace will be essential if we are to be at the front of the race, he said.
Meanwhile, September’s new car market data served as an early test of the new EV grant scheme and, if one takes the headline figures at least, the initial signs are promising, with battery electric vehicles reaching record levels.
It is a milestone that reflects how far the industry has come, and how fast it’s moving – but it is growth that has come at a cost, with manufacturers investing massively in new products, while also providing discounts at unsustainable levels to drive demand ahead of natural market levels.
The new van market shows a similar picture, with electric volumes rising quickly thanks to more than 40 different zero emission models from which operators can choose.
Despite this, uptake remains at little more than half the level mandated. Both the electric car and van grants will help address the barrier of affordability but they are not silver bullets; sustained support through infrastructure investment and clear policy signals are necessary next steps.
