LONDON, March 13 (Reuters) – According to a statement made by the UK’s Car industry organisation on Monday, the country runs the risk of slipping behind in the competition to manufacture electric cars (EV) if it does not respond immediately to large-scale measures being undertaken by the United States and the European Union to boost the industry.
The Society of Motor Manufacturers and Traders has warned that unless the government takes swift action, Britain would lose its position as the world’s leader in electric vehicle production.
The Inflation Reduction Act of 2009 saw the United States government commit to providing $369 billion in grants and loans to encourage the development of environmentally friendly technologies including electric automobiles (IRA).
After that, the European Union came out with Green Deal Industrial Strategy the next month out of worry that a law passed in the United States could put European companies at a competitive disadvantage.
The Society of Motor Manufacturers and Traders (SMMT) has published a paper titled “Race to Zero: Powering Up Britain’s EV Supply Chain” that details a number of actions the SMMT believes are necessary to help British automakers compete.
Rishi Sunak, the Prime Minister of the United Kingdom, stated last week that he was discussing the IRA with the European Union and the United States due to his concerns that it might make EU markets less competitive.
Throughout Britain’s automobile industry, worries have been growing over the lack of big electric vehicle battery plants; without these plants, many people are afraid that vehicle manufacturers would move to the EU.
While hundreds of factories have been announced for Europe or are now under development, Nissan (7201.T) is the only company that has said it will establish a battery facility in Sunderland.
The chief executive officer of the world’s third-largest automobile manufacturer, Stellantis (STLAM.MI), Carlos Tavares, stated one month ago that the British automobile sector would be “in peril” if the country did not produce its own batteries.
The Society of Motor Manufacturers and Traders (SMMT) has provided some recommendations to make the United Kingdom more competitive. These include lowering the cost of energy, streamlining the approval process for battery production, increasing the country’s number of free trade agreements, and by boosting the current system of subsidies and incentives for projects related to batteries.
The Chief Executive Officer of the Society of Motor Manufacturers and Traders (SMMT), Mike Hawes, stated in a statement that “We need to increase our efforts to compete in the global race towards zero-emission vehicles because other regions are increasing their support at a rapid pace.