The automotive sector, which is integral to the UK’s leveling off, net zeroing and moving forward globally, calls for a dedicated framework to drive a rapid upgrade of UK battery production and switch to electric vehicles.
Producers are concerned that the UK is falling behind the US and the European Union (EU) in terms of state aid in order to deal with the situation.
This is due to the US Inflation Reduction Actwhich will offer billions of dollars in subsidies to create supply chains electric vehicles.
The EU is also considering taking action in response, explicitly relaxing state aid rules.
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UK production
The Government says it is determined to make the country a attractive place for manufacturing investment.
Manufacturers hope to hit 1 million cars again by 2025, but to achieve pre-pandemic levels would require huge investment and the arrival of new carmakers in the UK.
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Mariano Fuchila
Mike Hawes, chief executive of SMMT, said in a statement that these numbers reflect how difficult it has been to navigate this situation, “although we continue to build more electric vehicles than ever before – high-value, cutting-edge models that are in demand around the world,” he said.
He further assured that the potential of this sector to generate economic growth by building more of these zero emission models it goes without saying, however, “we must make the right decisions now.”
“This means design a strategy to push a rapid improvement in battery production and the shift to electric vehicles based on the fundamental strengths of the automotive sector: a highly skilled and flexible workforce, engineering excellence, technical innovation and productivity levels that are among the best in Europe.”
Investment
In 2022, the publicly announced for the sector reached a total of £4.5 billionwith important new commitments for electrification in Crewe and Merseyside.
This was slightly below the £4.9bn potential announced in 2021, which included the proposed development of a new giga-battery factory in the West Midlands.
Secondly, electric vehicle production reached record levels with almost a third of all cars made fully electric or hybridworth 10 billion pounds in exports alone.
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Despite these challenges, UK factories produced a record 234,066 battery electric vehicles (BEVs), plug-in hybrids (PHEVs) and hybrids (HEVs), with combined volumes rising 4.5% year-on-year to account for almost a third (30.2%) of all automobile production.
Total BEV production increased 4.8%, with hybrid volumes up 4.3%, and increased production of these vehicles will be critical to achieving net zero for both the UK and the US. major foreign markets.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
