The SMMT held its 108th Annual Dinner on the eve of the Autumn Budget, attended by over 1,000 people including the Rt Hon Peter Kyle MP, Secretary of State for Business and Trade. Mike Hawes, Chief Executive of SMMT, welcomed the Secretary of State’s “commitment to partnership with our industry, and to continue government’s backing of UK Automotive as a pillar of national strategic importance.”
This commitment was reflected in several Budget announcements, including an “additional £1.5 billion to drive competitiveness and investment,” the deferral of Employee Car Ownership Schemes, changes to the VED expensive car supplement, and a consultation on the British Industrial Competitiveness Scheme to potentially reduce energy costs. Mr Hawes stated these measures will assist the sector in delivering “the parallel missions of economic growth and decarbonisation for the country.”
However, these positive measures will not “offset the impact of imposing a new electric-Vehicle Excise Duty (eVED) on an already fragile EV market.” Manufacturers have been under acute pressure, having “invested to bring consumers a choice of more than 150 EV models – and subsidised their sale at unprecedented levels.” Mr Hawes noted that with the OBR warning the new tax will undermine demand, it is “essential that government works with industry to reduce the cost of compliance and protect the UK’s reputation as a location for investment.”
The pressure on the sector was underscored by difficult October manufacturing data, with SMMT’s latest data showing car output declined by -23.8% due to the impact of the cyber incident. Despite this, almost half the cars made were electrified. Volume growth is expected to return, with the production outlook anticipating 828,000 cars and vans made next year.
Finally, the SMMT announced that Paul Philpott, President and CEO of Kia UK, will succeed Mick Flanagan as the new SMMT President.
