The UK car industry body

The UK car industry body has called for an immediate response to US and EU plans

Britain risks slipping out of the battle to create electric vehicles (EV) if it fails to respond quickly to large-scale US and EU initiatives to support industry, according to the UK’s auto industry body on Monday.

“Britain’s ability to compete as an EV production leader is at risk unless the government responds urgently to increasingly fierce international competition,” as per the Society of Motor Manufacturers and Traders (SMMT).

Under the Inflation Reduction Act (IRA), the United States announced $369 billion in subsidies to aid clean technologies and electric vehicles in the previous year. Following that, the EU came up with the Green Deal Industrial Plan last month in response to worries that US law could disadvantage European countries.

The SMMT presents a list of initiatives that it sees as necessary to help Britain’s carmakers compete in its report titled “Race to Zero: Powering Up Britain’s EV Supply Chain.”

British Prime Minister Rishi Sunak said last week he was speaking with the United States and the European Union about the IRA amid worries it could make European markets hostile.

The lack of major EV battery plants has caused issues within the British automotive industry, which fears vehicle manufacturing will shift to the EU. Only Nissan (7201.T) has revealed its intention to construct a battery plant in Sunderland. It has disregarded the fact that dozens of plants have been announced or are under construction in Europe this month.

Carlos Tavares, CEO of Stellantis (STLAM.MI), the world’s third-largest automaker, stated last month that the British auto industry would be “in trouble” if batteries were not manufactured in the UK.

The SMMT’s suggestions for increasing Britain’s competitiveness entail providing more hefty subsidies and incentives for battery-related projects, cutting energy costs, streamlining planning approval for battery production, and expanding the country’s free trade agreements.

“With other parts of the world turbocharging their support for the zero-emission vehicle transition, we need to step up to compete in this global race,” SMMT CEO Mike Hawes stated.

- Published By Team Timeswire

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