Mike Hawes, Chief Executive of the SMMT, has emphasised the UK automotive sector’s leading role in the nation’s growth and decarbonisation agenda, citing recent government initiatives.
The reintroduction of an electric car grant, absent since 2022, is a welcome development for the industry, which has long advocated for incentives to drive EV market expansion beyond current demand. Hawes stresses that swift and certain deployment of this scheme is now crucial for its impact.
Consumers currently have over 130 electric models available, with more options emerging across various price points and segments. The SMMT highlights the significant challenge ahead: the incentive scheme aims to boost EV sales from one in four new purchases today to four in five by the decade’s end.
Further supporting the EV transition, the government has allocated £63 million in chargepoint funding. This investment seeks to encourage a broader range of road users, including the third of motorists without driveways—through provisions like roadside gullies—as well as van, truck, and coach operators requiring depot connections, to consider electric vehicles.
The new electric car grant and chargepoint funding are the latest in a series of government announcements that underscore the automotive sector’s importance in achieving the UK’s decarbonisation and economic growth objectives. A robust new vehicle market is also key to attracting investment and creating jobs, a mission significantly bolstered by the £2.5 billion DRIVE35 Automotive Transformation Fund.
Hawes concludes that these announcements, aligning with the government’s new Industrial and Trade Strategies, foster a comprehensive, long-term approach for the industry. However, effective deployment is essential for success, enabling industry, government, and related sectors to deliver the necessary rapid change for the country.
