The Society of Motor Manufacturers and Traders has proposed 12 policies that, it believes, will prepare the UK’s car industry for the rise of electric vehicles…
SMMT Pitches Electric Vehicles Plan
In a new report, ‘Full Throttle: Driving UK Automotive Competitiveness’, the SMMT has pitched a series of policies it believes are necessary in preparing the UK’s car industry for the mass-rollout of electric vehicles. In particular, it calls for a binding target of of 60GW/h of battery capacity be established by 2030. This capacity, in the form of so-called ‘gigafactories’, would allow the UK to produce a million EVs each year; and, crucially, afford manufacturers with tariff-free access to markets within the European Union.
Just as ambitiously, the report suggests that the government should work to install a minimum of 2.3 million public chargers; guaranteeing access even for drivers without a means of home-charging. In addition, this new infrastructure would inspire confidence amongst motorists; increasing the rate of transition to ‘green’ motoring.
Mikes Hawes, SMMT chief executive, has stated that the next few years will be ‘critical’ for the nation’s automotive industry. He said, “the next few years represent a critical period for the sector. The pace of technological change is accelerating and the competition more ferocious”. He added, “if we are to secure vehicle manufacturing in this country, with all the benefits to society that it brings, decisions need to be made today”.
The Report’s Policy Proposals
1) Commit to creating 60 GWh of battery production within the UK via gigafactories by 2030.
2) Support development of a fuel cell gigafactory with 2GWh capacity to support cars, heavier vehicles and rail units by 2030.
3) Roll out a comprehensive and long-term skills strategy that supports auto needs combined with piloting greater flexibility in the Apprenticeship Levy to support retraining.
4) Commit to the UK becoming a global leader in developing, testing, trialling and deploying Connected and Automated Vehicle (CAV) technology.
5) Introduce a new ‘Build Back Better Fund’ to support good manufacturing jobs for the future and help lower manufacturing costs such as energy.
6) Allow net zero critical industries, such as manufacturers of low carbon, hydrogen and battery vehicles, to access the same benefits and compensation schemes as energy intensive industries and get more support within the UK Emission Trading Scheme (ETS).
7) Fund trial and demonstration projects to explore the use of hydrogen during manufacturing.
8) Ensure the UK tax system helps position Britain as an attractive destination for global investment.
9) Develop a holistic infrastructure strategy to ensure that at least 2.3 million public charging points are in place by 2030.
10) Commission an independent review to holistically consider the long-term future of fuel duty and CO2 based taxes like vehicle excise duty in a decarbonised sector.
11) Continue Plug-in Vehicle Incentives beyond their current term and exempt Ultra Low Emission Vehicles from taxation for the next five years.
12) Work with the industry to develop an ambitious, forward looking trade strategy, which targets the sector’s most important markets.
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